The Swiss watch industry records its first decline in employment since the end of Covid.

In September 2025, the Swiss watch industry recorded its first decline in employment figures since Covid-19. This was announced today by the employers' association of the Swiss watch and microtechnology industry (CP).

Despite the efforts of companies in the Swiss watch industry and their reliance on short-time work, the sshrinking volumes and the slowdown in certain segments can be felt across large parts of the watch industry.

The outlook for 2026 remains uncertain, with the association expecting pressure on employment figures after the end of short-time work schemes. For the first time since the Covid crisis, the sector is losing 835 jobs (-1.3%) compared to the same period last year.

This moderate decline is a sign of companies' efforts to preserve jobs in a challenging environment, according to the CPIH. The widespread use and extension of short-time work schemes has limited the extent of this decline and maintained production capacity.

Swiss watch industry: Extensive use of short-time work

The decline in the number of employees to 64,807 is attributable to the difficult economic environment, characterized by shrinking volumes and a global slump in consumer spending. More than a quarter of companies had applied for short-time work at the end of November. The extension of short-time work from 18 to 24 months played a crucial role in limiting the impact on employment.

Different regional trends

The historical cantons of suppliers to the watchmaking and microtechnology industries suffered the steepest declines: Vaud (-4.2% %), Neuchâtel (-3.5% %), Jura (-3.2% %) and Bern (-2.1% %). This development reflects the decreasing volumes in the areas of components, tools and assembly.

However, they also highlight the difficulties in sectors associated with microtechnology, such as mechanical engineering or the automotive industry, which further increase the pressure on suppliers.

In contrast, the canton of Geneva benefited from positive momentum and a 3 percent increase in employment figures, attributable to segments that are less susceptible to economic fluctuations.

In the rest of Switzerland, an increase (+2.9 %) was observed, primarily due to new business start-ups. However, the volumes were significantly lower than in the watchtower regions.

Increasing skills and more learners

The watchmaking industry continued to invest in education, which is a fundamental lever for competitiveness. By 2025, 27.8 percent of employees had higher education (17,425 people) and 44.4 percent had vocational qualifications (27,838 people), while the proportion of the workforce without formal training decreased slightly to 25.2 percent.

The number of trainees increased last year to 1,685 (2.7 million of the workforce). These results confirm that, in light of technological developments and quality requirements, the industry is strongly committed to knowledge transfer and skills development.

Difficult prospects for 2026

After a decline in employment figures in 2025, companies in the watch industry are taking a cautious view of 2026. The lifting of short-time work schemes for certain companies could increase the pressure on jobs in the sector.

Should the economic situation persist, some companies may be forced to readjust their production capacities despite their efforts to adapt to an increasingly challenging economic environment.

cpih.ch