Sobering start to the year for personnel service providers
The economic slowdown is weighing on personnel service providers. The temporary and permanent staffing markets remain in the red in the new financial year. This is shown by the new Swiss Staffingindex.
Personnel service providers had a negative start to 2025 in the first quarter. In the temporary staffing market, the financial year started in the red for the third time in a row. The number of hours worked in staff leasing fell by 8.4%. The permanent placement market slumped by 24.6 percent. As a traditionally cyclically sensitive sector, personnel service providers are feeling the effects of economic uncertainty particularly keenly. The US customs policy under current President Donald Trump is fueling this development at a time when the economy is cooling down anyway and geopolitical risks remain high.
Reluctance to hire temporary staff
The Swiss economy is therefore faltering - and threatens to cool down even more with the global economy: "Many of the recruitment companies are unsettled. They are finding it difficult to predict their turnover and staffing requirements," explains Daniel Staffelbach, General Manager Switzerland at Coople. Accordingly, they are reluctant to hire temporary staff. Donald Trump's tariff policy is increasing the uncertainty that already existed in the economy before he took office. At the same time, many companies are wondering whether and when the defense packages abroad will have a positive impact on the Swiss economy. This is forcing companies to think in the appropriate scenarios. Staffelbach notes: "The core workforce has already been reduced to a minimum in many places. If unforeseen events such as staff shortages, order peaks or increased customer volumes occur, speed and flexibility are crucial - and this is precisely when companies turn to us as a personnel service provider. The time between the notification of a personnel requirement and the first working day is becoming increasingly shorter."
Outlook for the financial year
The outlook for the future remains cautious. The downgraded growth forecasts, as recently reported by the Swiss Economic Institute (KOF) and the International Monetary Fund, are the first to be seen among personnel service providers. The cooling trend is therefore likely to continue. It can be seen in all sectors, construction, industry and most strongly in the service professions. However, there are also rays of hope. For example, private households continue to consume services in the leisure sector. This opens up new opportunities for personnel service providers, even in a challenging market phase.
Source and further information: Swissstaffing.ch
