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Swiss unemployment trends higher despite May dip

Published 06/08/2009, 01:57 AM
Updated 06/08/2009, 02:08 AM
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ZURICH, June 8 (Reuters) - The number of jobless in Switzerland inched down in May but the trend still points to higher unemployment as the recession forces more and more firms to axe jobs, data showed.

The unemployment rate ticked down to 3.4 percent from 3.5 percent in April, the State Secretariat for Economic Affairs (SECO) said. When adjusted for seasonal swings, however, the unemployment rate rose by a notch to 3.5 percent.

Economists surveyed by Reuters had expected both rates at 3.5 percent.

The total number of unemployed fell by 1,581 to 135,128 and the number of vacancies dropped by 658 to 11,739.

Switzerland slipped into recession at the middle of last year and the Swiss central bank expects the economy to shrink by up to 3 percent this year, which would be the worst decline in over 30 years.

Surveys like the Purchasing Managers' Index (PMI) indicate that companies are cutting staff at a high rate.

(Reporting by Sven Egenter; Editing by Kim Coghill)

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