(11.09.2024) The labor market has significantly strengthened since COVID. According to the Federal Statistical Office (FSO), the number of employed individuals rose by 5% between the fourth quarter of 2018 and the same period in 2023.
The unemployment rate also decreased between the last quarters of 2018 and 2023, based on both International Labour Organization (ILO) data (unemployment rate: 4%, down 0.6 percentage points) and the State Secretariat for Economic Affairs (SECO) figures (registrations at regional employment offices: 2.1%, down 0.3 percentage points). This shift took place against a backdrop of relatively moderate economic growth, marked by significant fluctuations caused by the health crisis between 2020 and 2021.
However, inflation has put pressure on wages. In 2023, nominal incomes increased compared to 2022 (+1.7%), but this wasn’t enough to keep pace with the rise in consumer prices (+2.1%). As a result, purchasing power fell by 0.4%. This marks the third consecutive decline in real wages, which dropped by an average of 0.2% between 2019 and 2023.
In the coming months, job openings are expected to keep rising, but at a slower pace than in previous years. The labor market is showing signs of strain, with 12,300 fewer vacancies in the first quarter of 2024 compared to the same period in 2023, a 9.7% drop. Employment growth forecasts point to a short-term increase, but at a rate 1.9% lower than in the first quarter of 2023.
Furthermore, the outlook varies widely across sectors. Significant declines have been noted in the "textile and clothing industries" (-3.9%) and the "postal and courier services" sector (-3.7%). In contrast, employment has seen strong growth in "water and air transport" (+11.3%) and "real estate activities" (+7.0%).
Last modification 11.09.2024
