"I am happy with the result. The voters recognised that Switzerland's economic success is based on the social partnership between employers and employees."
-Hans-Ulrich Bigler, head of the Schweizer Gewerbeverband
The situation in the Swiss labour market improved substantially in the third quarter, showing Alpine country's resilience to global headwinds and supporting the case the cap on the Swiss Franc may soon be removed. On Monday the Federal Statistical Office said there were 4.196 million people employed during the third quarter of the year, up from 4.166 in the preceding quarter. The figure is almost in line with analysts' expectations, who were betting for a figure of 4.197 million. Despite positive trend, markets were disappointed. Soon after the release of data, the USD/CHF advanced above 0.91. Moreover, also Monday other crosses with Franc inched higher. Hence, EUR/CHF soared above 1.23, AUD/CHF reached 0.834, while CAD/CHF moved closer to the last week's high, all pointing at Franc's weakening.
Meanwhile, Swiss voters have decisively rejected a proposal that would have made it illegal for businesses to pay staff more than 12 times the wage of their lower earner, with 65.3% of voting against the plan. In case the proposal would be supported, it could put nation's prized competitiveness at risk, as well as make a hole in the public finances by reducing tax receipts. The debates on fairness, however, are expected to continue in the country, with one of the other initiatives to introduce a minimum wage of 22 francs per hour, or 4,000 francs per month.
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