KOF Employment Indicator

The KOF Employment Indicator enables an early estimate to be made of the labour market situation. The indicator has a lead time of one quarter over the rate of change of the previous year.

The KOF Employment Indicator is based on the results of the KOF surveys in nine sectors, which cover 85% of private employment in total.

The average value of the balances of each survey on current employment and planned employment is calculated for the estimate. A weighted average is determined which then produces the indicator.

The press release of the KOF Employment Indicator is published in German and French.

Interpretation

In judgement questions about emplyoment companies tend to be caucious and therefore prefer to enter negative answers. This can lead to a too negative judgment, especially as companies prefer to enter a negative emplyoment outlook because of the cost relevance.