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Switzerland’s unemployment rate currently sits at 2.8 percent, a figure that, while representing a slight increase, aligns with the nation’s long-term average. Around 147,000 people were registered as unemployed at the close of December 2025, and for the first time in recent memory, unemployment insurance is operating at a deficit.
What’s your assessment of the current job market?
Jérôme Cosandey explained that the unemployment rate has seen a slight uptick over the past two years. Following the strong economic rebound after the COVID-19 pandemic, unemployment was exceptionally low. “At 2.8 percent, we are now back to the long-term average unemployment rate,” he stated.
Unemployment Figures from the State Secretariat for Economic Affairs Seco
The rate has risen towards the end of the year, and you’re forecasting 3.1 percent unemployment for next year. What’s driving this?
Weak demand in key export markets, particularly China, is impacting the watch industry. The conflict with the United States also plays a role. While a solution has been found regarding threatened tariffs of 39 percent, they remain higher than pre-crisis levels, and uncertainty persists.
The ALV is still very solidly positioned.
Unemployment insurance is now in the red due to higher unemployment. A 300 million franc deficit – how concerned are you?
“That’s not insignificant,” Cosandey acknowledged, “but when compared to our annual expenditure of around eight billion francs or the reserves, which also total around eight billion, the ALV is still very solidly positioned. The ALV is designed to create a buffer for challenging times. It can continue to function across an economic cycle without requiring structural changes – such as increasing wage contributions or reducing benefits, which is not an issue at the moment.”
Are you well-prepared, both financially and organizationally?
“Yes, we introduced a new IT system over the New Year to improve the efficiency of employees at the regional employment centers, known as RAVs. This allows them more time to support those who face greater challenges finding new employment due to their age or qualifications.”
At Seco we work directly for people; our work has an immediate impact and is tangible.
You come from the private sector, from Avenir Suisse, a liberal business think tank. How does working in administration feel after six months?
“In my previous role, I was able to shape the future of Switzerland. That was exciting. But here at Seco, we confront issues that require immediate solutions. We work directly for people, and our work has an immediate and tangible impact.”
How do you experience the exchange with the social partners, employers and unions?
“For example, we work closely with social partners on wage protection and workplace safety. This is a challenging dynamic. Interests and priorities aren’t always aligned, but that’s one of Switzerland’s strengths that I can experience and shape daily: that we talk to each other and seek solutions together. It sometimes takes time, but once we reach a consensus, it works.”
The interview was conducted by Klaus Bonanomi.
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