Why More Swiss Employees Are Feeling Uncertain

The Swiss labour market remains strong by international standards, but the climate has changed. According to a survey by Employés Suisse reported by 20 minutes and Econostrum, one in four employees is now worried about their job. Even more striking for company management: one in ten people consider it very likely that they will lose their job within the next twelve months.

For SMEs, this is not just a social indicator. It is a management signal. Staff concerns quickly manifest themselves in pay negotiations, staff retention, absenteeism and productivity, but also in the ability to recruit. This is the Swiss paradox: unemployment is rising year-on-year, whilst many companies are still struggling to find the skills they need.

Full employment no longer dispels the fear of redundancy

The latest figures from the State Secretariat for Economic Affairs paint a mixed picture. In June 2026, Switzerland had 137,751 registered unemployed, representing an unemployment rate of 2.9 per cent. The number of unemployed fell by 2,524 compared with the previous month, a drop of 1.8 per cent. But the year-on-year comparison tells a different story: compared with June 2025, unemployment has risen by 10,874 people, or 8.6 per cent.

This trend is enough to shift perceptions. In an economy accustomed to a tight labour market, a year-on-year rise – even a modest one – carries greater weight than it would in an already deteriorating environment. Employees’ sentiments are also fuelled by announcements of restructuring. According to the survey cited by 20 minutes, 29 per cent of employees say they have already experienced restructuring within their company. Concern appears to be more pronounced among those under 30 than among those over 55.

Nevertheless, the number of people in employment continues to rise slightly. In the first quarter of 2026, Switzerland had 5.351 million people in employment, up 0.2 per cent year-on-year; in full-time equivalents, the increase was 0.3 per cent. However, the employment rate for 15–64-year-olds fell from 79.8 per cent to 79.3 per cent between the first quarter of 2025 and the first quarter of 2026. In other words, the labour market is not collapsing, but it is becoming less favourable for some workers.

Restructuring: big names set the tone, SMEs feel the pressure

The redundancies announced in recent months are not confined to any single sector. The sources cited include UBS, Novartis, Sunrise, Takeda and Siegwerk. In Bargen, in the canton of Bern, Siegwerk – a company specialising in inks and varnishes – is set to cut 100 jobs following the decision to relocate part of its operations to Turkey, according to Econostrum.

For a Swiss SME, these announcements have an impact that extends beyond the companies directly affected. They alter expectations. Employees are becoming more attuned to subtle signs: investment freezes, vacancies left unfilled, increased use of fixed-term contracts, postponed projects and cost pressures. Even when no measures are planned, a lack of internal communication can leave the field open to rumours.

The manufacturing sector appears particularly vulnerable, according to available sources. Econostrum notes that the strength of the Swiss franc makes Swiss production more expensive for foreign customers, whilst trade tensions and high costs are weighing on profit margins. Swissmem, cited by Econostrum, reported that the Swiss tech sector employed 322,900 people at the end of 2025, 6,600 fewer than a year earlier. It had described 2025 as a ‘lost year’, with turnover remaining virtually stable.

The start of 2026 brought some positive signs for the sector: orders rose by 10.1 per cent in the first quarter and turnover by 3.4 per cent, according to figures reported by Econostrum. However, the improvement appears uneven. Industrial SMEs are reported to have seen their turnover fall by 1.8 per cent. For smaller firms, this difference matters: they often have less financial flexibility, less geographical diversification and less capacity to absorb a slump in orders.

The Swiss paradox: higher unemployment, but jobs still hard to fill

The slowdown does not mean that companies can recruit easily. In the first quarter of 2026, companies reported 5.0 per cent more job vacancies than a year earlier, according to federal data included in the research report. An AXA study published in 2025 also indicates that 44 per cent of SMEs have encountered difficulties in filling vacancies.

This coexistence of rising unemployment and a skills shortage is by no means illogical. The labour market is not a homogeneous entity. A post made redundant in one role, region or sector does not necessarily match the profile sought elsewhere. Technical, linguistic, digital or managerial skills are not automatically transferable. Companies may therefore reduce their workforce in certain departments whilst actively seeking staff in others.

For SME managers, this situation complicates planning. On the one hand, prudence dictates keeping a close eye on fixed costs, of which salaries often represent a significant proportion. On the other hand, cutting staff too quickly can weaken the business just as orders start to pick up again. The cost of a failed or belated recruitment drive is not limited to the salary: it includes training time, the loss of expertise, the extra burden on existing teams and, at times, a decline in customer service.

Continuous training therefore becomes a tool for resilience. Whilst it does not claim to solve all problems, it enables existing skills to be adapted before systematically looking for candidates externally. In an uncertain climate, an SME may benefit from identifying critical roles, skills gaps and staff with potential for development. This approach must be tailored to the company’s size, cash flow, sector and business prospects.

How anxiety is changing day-to-day HR management

When a quarter of employees say they are worried about their jobs, human resources management can no longer be limited to contracts and payslips. Uncertainty influences behaviour: some employees put personal plans on hold, others discreetly look for a new job, whilst others still disengage out of fear for the future. Middle managers often find themselves on the front line, with little information and many issues to deal with.

In this climate, internal communication becomes a management tool. It is not a question of promising absolute security, but of explaining what can be made clear: the state of orders, the company’s priorities, cost trends, skills requirements and the timetable for decisions. A statement that is too vague or comes too late can prove costly. Conversely, transparent communication – even when cautious – helps to maintain trust.

From an administrative perspective, companies must also bear in mind the Swiss legal framework. The Federal Labour Act sets out rules regarding working conditions, whilst the Unemployment Insurance Act governs benefits in the event of job loss. SECO oversees, in particular, labour market policy instruments, including measures relating to short-time working. These schemes may be relevant in certain situations, but their application depends on specific conditions and must be assessed on a case-by-case basis.

For an SME, there are several management practices that should be strengthened without waiting for a full-blown crisis: updating cash flow scenarios, documenting key HR decisions, monitoring changes in overtime and holiday entitlements, assessing reliance on a few key clients, and anticipating the need for replacements in critical roles. These measures are no substitute for specialist advice, but they do reduce the risk of decisions being taken in haste.

Digitalisation adds a more pervasive uncertainty

Beyond the economic cycle, technological transformation is changing staffing requirements. Econostrum highlights that artificial intelligence adds a new layer of uncertainty, including for certain office-based roles. The issue now extends beyond production lines: administration, support, marketing, customer service, accounting and data analysis may all be affected by the automation of repetitive tasks.

For employers, the challenge is not simply whether or not to replace roles. It lies in redefining the nature of the work. A role may lose certain routine tasks and take on new responsibilities relating to supervision, customer relations or analysis. This requires clarifying expectations, training staff and, in some cases, reviewing the internal organisation. For employees, uncertainty often stems from a lack of clarity regarding this transition.

Caution is particularly important in small businesses. A poorly integrated digital solution can disrupt processes rather than streamline them. Conversely, refusing to adapt at all can create a backlog that is difficult to make up for. The right pace depends on the sector, the customers, in-house skills and investment capacity. Here too, the most sound decisions are rarely the most spectacular: they are based on a concrete assessment of tasks, costs and risks.

The Swiss labour market is not plunging into a widespread crisis. Statistics still point to a solid foundation, and certain sectors focused on the domestic market continue to play a stabilising role. But the signal being sent by employees is a serious one. When one in four people begins to doubt the security of their job, companies would do well to treat employment not as an isolated adjustment variable, but as a central element of their economic, financial and human resources strategy.