Swiss Unemployment Rate at 5-Year Low


Swiss unemployment declined in June, pushing the jobless rate to the lowest in almost five years as companies step up spending and hiring to meet orders.

The number of people without work fell by 2,843 to 107,561, the State Secretariat for Economic Affairs in Bern said on July 6. The jobless rate fell to 2.7 percent, the lowest since August 2002, from 2.8 percent when adjusted for seasonal swings. That's in line with economists' forecasts in a Bloomberg News survey.

The Swiss economy is showing few signs of cooling from the fastest pace since the turn of the decade with declining unemployment bolstering households' optimism. The Swiss National Bank last month raised its growth forecast for this year and signaled it's ready to raise interest rates further if needed.

``The Swiss have something that other European countries don't have: full employment,'' said Thorsten Polleit, an economist at Barclays Capital in Frankfurt. ``Past rate increases had only little impact on the booming economy. There are still a lot of reasons from the economic side to hike rates further.''

 


Bloomberg
7/7/2007 5:39:24 PM