The KOF indicator points to improving employment prospects

Prospects for the Swiss labour market have improved. The employment indicator compiled by the economic research centre of the Federal Institute of Technology in Zurich stands at 2.1 points in the third quarter of 2026.

The reading rose by 0.5 points against the previous quarter and exceeds the long-term average of 1.7 points. The survey is based on responses from 4,200 companies.

The recent path helps in reading the figure. After mid-2022 the indicator fell steadily and entered negative territory in the third quarter of 2025, for the first time since the pandemic. The recovery that began in late 2025 is continuing.

Sectors moving in opposite directions

The overall picture conceals marked differences.

Retail records the sharpest rebound, moving from minus 3.1 to plus 2.9 points. It is the first positive reading since mid-2024.

Construction stands at plus 11.2 points, the highest level among the sectors covered.

On the other side, wholesale remains at minus 1.9 points, in negative territory for over two years. Manufacturing stops at minus 5.3 points, but marks the fourth consecutive quarter of easing pressure.

Hotels and restaurants remain the weakest segment, at minus 8.8 points, the lowest reading since the second quarter of 2021.

The gap between construction and hospitality deserves attention. It shows that the average improvement does not come from a broad recovery, but from the sum of sector trends far apart from one another.

For businesses this means hiring conditions vary considerably by branch. An aggregate indicator above average is therefore not enough to describe the cost and the difficulty of finding staff in any particular sector.