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Swiss employment up in Q3, outlook still rosy

Published 11/25/2010, 04:51 AM
Updated 11/25/2010, 04:56 AM

* Employment growth particularly strong in services

* Growth also seen in Q4

ZURICH, Nov 25 (Reuters) - Swiss employment grew 1 percent in the third quarter, boosted by strong job creation in the services sector, with prospects good for more growth in the fourth quarter, the Federal Statistics Office said on Thursday.

Swiss non-farm payrolls rose 1 percent year-on-year, with growth in the services sector of 1.2 percent outpacing 0.3 percent growth in the industrial sector.

"The number of employees in the secondary sector rose slightly, while in the tertiary sector there was a significant increase in employment," the statistics office said.

"As in the previous quarter, the indicators for the near future show a positive trend for the next quarter."

Switzerland has registered solid job growth since the middle of last year and unemployment has been falling as the economy emerged less bruised from the global recession than many other European countries thanks to resilient consumer spending.

"Overall, we retain our positive view with regards to job market trends but we would also note that the scope for further decline in the unemployment rate looks somewhat more limited," said Credit Suisse economist Fabian Heller.

The statistics office added that it had changed the way it publishes employment data, with workforce data published in a separate statement from the third quarter.

The KOF's quarterly employment indicator published earlier this month confirmed Swiss firms are set to hire new staff in the coming months despite an expected cooling of the economy.

A survey by UBS published on Thursday showed that small and medium-sized firms have increased their workforce in the third quarter and remain positive about hiring.

The Swiss National Bank has warned that the strong Swiss franc is taking its toll on the export-dependent economy. It expects growth to ease "markedly" next year compared with this year's expected rate of around 2.5 percent.

The adjusted unemployment rate fell to 3.6 percent in October, down from the high of 4.2 percent hit in the wake of the recession.

(Reporting by Emma Thomasson; Editing by Ruth Pitchford)

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