The Swiss labor market appears relatively stable, despite weaknesses in the Swiss banking and automobile industries. Unemployment recently fell to a 5.5 year low of 2.5 percent. Manufacturing strength, as measured by the Swiss Purchasing Managers Index, remains only slightly lower than the average held during the previous year. In fact, the resilience to negative global growth pressures exhibited in the most recent PMI measurement can be explained primarily through employment growth. The employment growth index component of the PMI actually rose to a six month high, while the other four components deteriorated.

The quarterly Manpower Employment Outlook Survey supports the conclusion that the job market remains relatively positive. Among the 786 employers surveyed, 10 percent plan to add staff, while only one percent expects to reduce staff size. It is apparent that the vast majority plan to make no changes. Concludes Charles Belaz, managing director of Manpower Switzerland, "the results of the survey as well as our business activities of the first two months of the year do not indicate any weakening of the Swiss labor market."