There is no shortage of negative headlines: «Bankers register with the unemployment office,» writes Blick. Industry portal «Tippingpoint» goes even further, reporting: «Number of unemployed bankers climbs to a new record high». Is Switzerland's financial centre heading for icy times?

«We see no signs for that. The situation in Zurich is certainly tense. But across Switzerland, we do not observe a significant increase in unemployment in the banking sector,» says David Frey of Arbeitgeber Banken, the association of all banking groups and financial service providers. It is unclear whether the situation in Zurich is truly due to the integration of Credit Suisse.

Only Slightly Elevated Figures

Frey refers to the latest labour market index, which the association publishes quarterly together with BSS Economic Consultants. For the third quarter, the Swiss banking labour market appears stable overall: the unemployment rate in the banking sector stands at 3.1 percent across Switzerland, only slightly above the cross-industry figure of 2.9 percent. 

Thus, the index remains at the level of the previous quarter and is around 17 percent higher than in 2015. A similar situation has emerged in recent years as well, notes Frey: «It is not unusual for the unemployment rate in the banking sector to be slightly higher than the overall average. We have been observing this development for several years.»

Shortage of Skilled Workers Persists

Despite the slightly higher unemployment rate, the structural shortage of skilled workers persists. There is still more than one open position for every unemployed person in the banking sector - a clear sign of excess demand for qualified financial professionals. Even in Zurich, where job cuts are most noticeable, institutions report difficulties in recruiting suitable staff for certain specialist functions (see chart).

Frey attributes this development mainly to the general demand for skilled workers: «Not only in the banking sector, but in many other industries, specialists are in high demand. It would therefore be wrong to attribute this to a loss of reputation among banks,» he emphasizes. 

Stable Employment Expectations

According to the labour market index, the majority of banks are planning neither substantial staff expansions nor major reductions. Employment expectations and assessments of the current situation remain balanced. Overall, conditions are therefore comparable to those prevailing prior to the coronavirus pandemic in 2019.