7 November 2003, 10:38  Swiss jobless rate, set to weigh on mood

ZURICH, Nov 7 - The Swiss unemployment rate climbed in line with expectations to 3.8 percent in October, data showed on Friday, signalling that job security fears will remain a brake on Switzerland's battered domestic sector. The State Secretariat for Economic Affairs said the number of registered unemployed had risen some 4,571 to 151,259. The increase from 3.7 percent in September had been widely expected by the market and was shrugged off by traders. Unemployment close to five-year highs reinforces the central bank's easy policy stance as the Alpine state struggles through a double-dip recession despite signs of an upturn in the industrial sector, which is expected to recover next year. Consumer fears about jobs have put a dampener on private spending, typically a bulwark of the economy. Consumer sentiment ticked up slightly in October but still remained depressed at low levels, a Swiss government survey showed on Thursday. Fewer people were uncertain about keeping their jobs, the survey showed, but the subindex for employment expectations still languished at rock bottom levels of minus 119 compared with minus 124 in the previous quarter. With consumers expected to keep a wary eye on wallets during the important Christmas shopping season, the Swiss National Bank is set to keep interest rates around record low levels well into next year in order to help support a recovery.//

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