Swiss Watch Industry Faces First Employment Downturn Since Post-Covid Era
The Swiss watch industry is experiencing its first employment downturn since the post-Covid era, with about a quarter of companies utilizing the country's short-time work program to manage staffing while avoiding permanent job cuts. The government has extended this program's duration in response to a persistent decline in demand for luxury watches. The Convention Patronale emphasizes that the program has been vital in protecting jobs and maintaining watchmaking expertise; however, ongoing economic pressures could lead to further job losses and production downsizing in the sector. The industry, which supports approximately 65,000 jobs and represents a significant part of the Swiss economy, is facing challenges due to geopolitical conflicts and a slowdown in economic growth, particularly in China and Europe. Disruptions in trade, influenced by fluctuating tariffs on Swiss exports to the U.S., have also contributed to a 1.6% decline in Swiss watch exports compared to the previous year. The last annual employment decline in the sector occurred in 2021, linked to the impacts of the Covid-19 pandemic, but the industry had previously rebounded strongly. The current situation raises concerns about the sustainability of jobs and production levels as economic conditions evolve.
