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This morning we received the monthly employment report compiled by Switzerland’s Secretariat for Economic Affairs (SECO). The report came in at 2.8%, one decimal point above expectations. On a seasonally adjusted basis, it stayed at 2.4%.
What’s surprising here is how low the unemployment rate is. This is no fluke. The unemployment rate in Switzerland has never gone above 6.0%, at least since records began.
By comparison, in any other developed country with a complex, advanced economy, structural unemployment is usually no less than 4.0% – and can be quite a bit higher.
In fact, given Switzerland’s reliance on complex economic sectors, such as finance and high-tech exports, one would expect the country to have a much higher structural unemployment level.
Has Switzerland been operating below structural level since, well, practically ever? Or is their economy just so amazingly good?
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