The Swiss government has announced an extension of partial‑unemployment benefits to help companies coping with rising U.S. tariffs. By lengthening the maximum compensation period from 18 to 24 months, the measure aims to limit layoffs, especially in the watchmaking and small‑industrial exporting sectors. The extension takes effect in November and is intended to give firms time to adjust to the difficult economic climate and avoid dismissals.
In August, the White House imposed a 39 % tariff on Swiss goods—far higher than the rate applied to the European Union. The machinery, electrical equipment, metals, and watchmaking industries are among the hardest hit. Partial unemployment in Switzerland allows workers whose hours are reduced or who are not working at all to remain on the payroll while the government subsidises part of their salary.
This is not the first time the Swiss government has broadened partial‑unemployment support. In mid‑2024, the benefits were already extended from 12 to 18 months in response to a surge in energy costs. According to the Ministry of Economy, the national unemployment rate stayed relatively low at 2.8 % in August and September, although data on short‑time work for those months have not yet been released.
A Deloitte study of the watchmaking sector, published the same day as the government’s announcement, found that 65 % of watch‑component suppliers had already resorted to temporary work‑hour reductions by July, underscoring the tariffs’ impact. The extension of partial‑unemployment benefits reflects the Swiss government’s effort to cushion the effects of U.S. trade measures and support affected businesses as the global trade landscape continues to evolve.
Comments are closed for this story.