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Switzerland today extended partial unemployment benefits to limit layoffs by companies hit by rising US tariffs, which have particularly hurt watchmakers and small industrial exporters.
The White House imposed 39 per cent tariffs on Swiss goods in August, a much higher rate than that applied to the European Union, reports AFP.
In a press release, Switzerland’s Federal Council announced that it was extending the maximum duration of partial unemployment compensation to 24 months, compared to 18 months previously.
The extension should allow them “to adapt to a still difficult economic situation” in the face of “uncertainty linked to customs duties” and “to avoid layoffs,” the government said.
“The machinery, electrical equipment, and metals industries, as well as the watchmaking industry, are among the most affected,” the statement added.
Partial unemployment in Switzerland refers to workers forced to reduce their hours or not work at all, while still remaining officially on staff — with the government paying part of their salary.
The extension will take effect at the start of November.
Partial unemployment benefits were already extended from 12 to 18 months in mid-2024 following a spike in energy costs.
According to figures from the Ministry of Economy, the unemployment rate in Switzerland was only 2.8 per cent in August and September, but statistics for short-time work during these two months are not yet available.
In a study on the watchmaking industry published today, the auditing and consulting firm Deloitte noted that 65 per cent of watch component suppliers, usually the first to be affected in the event of a slowdown, already reported in July that they had resorted to temporary work-hour reduction measures.
