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Swiss Unemployment Rate (ILO-based) behind Iceland, Germany and Czech Republic on position 4: All Four Countries Are Currency Manipulators

With 4.8%, the Swiss unemployment rate based on the ILO concept is higher than the rates in Iceland (2.6%), Czech Republic (4.0%) and Germany (4.1%), but lower than the ones of the remaining 25 countries in the data provided by Swiss Statistics.

As for youth unemployment, the Swiss are on position three with a rate of 11%, this is half the rate of the Eurozone, or a fourth of the rate in Spain or Greece.

All Four Countries Are Currency Manipulators

Interestingly three of the countries with low unemployment support their already strong economy with FX interventions. These are Switzerland, the Czech Republic and Iceland, while Germany does these FX interventions implicitly through the mechanism called Target2.

Capital flows out of Germany through the Euro System (aka Target2). With this system, Germany prevents the appreciation of its currency because most of its current account surplus feeds the countries in the periphery. Without these outflows the currency – i..e. the German Euro –  would appreciate. Hence all four low unemployment countries are currency manipulators.

 

 

Unemployment Rate according ILO in comparison

Country
Unemployment Rate
Q3 2015 (in %)
Unemployment Rate
Q3 2016 (in %)
Youth Unemployment Rate (15-24)
Q3/2016 (in %)
Switzerland 4.9 4.8 11.0
Eurozone 10.3 9.6 20.0
EU-28 8.9 8.2 18.0
Belgium 8.2 8.2 22.4
Bulgaria 8.3 7.2 13.2
Czech Republic 4.8 4.0 11.4
Denmark 6.2 6.4 13.5
Germany 4.4 4.1 7.5
Estonia 5.2 7.1 13.4
Ireland 9.3 8.3 17.1
Greece 24.1 22.6 42.0
Spain 21.2 18.9 41.9
France 10.0 9.8 23.8
Croatia 15.5 11.8 27.0
Italy 10.6 10.8 34.9
Cyprus 14.7 12.1 26.9
Latvia 9.7 9.0 17.3
Lithuania 8.3 8.3 17.4
Luxembourg 6.4 6.2 14.9
Hungary 6.4 4.9 12.8
Malta 5.3 4.8 10.6
Netherlands 6.6 5.6 10.3
Austria 5.6 6.1 11.9
Poland 7.1 5.6 15.4
Portugal 12.1 10.7 26.1
Romania 6.5 5.8
Slovenia 8.6 7.3 11.6
Slovakia 11.3 9.4 19.9
Finland 8.4 7.6 14.2
Sweden 6.5 6.3 14.7
United Kingdom 5.5 5.1 14.7
EFTA
Iceland 3.5 2.6 4.0
Norway 4.5 5.0 10.9

 

More from the German press release of Swiss Statistics.

 

Neuchâtel, 17.11.2016 (FSO) – The number of employed persons in Switzerland rose by 2.0% between the 3rd quarters 2015 and 2016. During the same period, the unemployment rate as defined by the International Labour Organisation (ILO) declined slightly from 4.9% to 4.8%. The EU’s unemployment rate decreased from 8.9% to 8.2%. These are some of the survey results from the Federal Statistical Office (FSO).

Number of Employed Persons in Switzerland and Full Time Equivalents.

Number of Employed Persons in Switzerland and Full Time Equivalents.

. - Click to enlarge

 

Download press release (pdf, 63kb)

Full story here
George Dorgan
George Dorgan (penname) predicted the end of the EUR/CHF peg at the CFA Society and at many occasions on SeekingAlpha.com and on this blog. Several Swiss and international financial advisors support the site. These firms aim to deliver independent advice from the often misleading mainstream of banks and asset managers. George is FinTech entrepreneur, financial author and alternative economist. He speak seven languages fluently.
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