Economic hardship escalates for recession-stricken Jura region due to increased US tariffs
The economy in Canton Jura, a region heavily reliant on the watch, tech, and machinery industries, is facing challenges due to a combination of factors, according to a report in Tamedia newspapers.
At the beginning of August, the State Secretariat for Economic Affairs (SECO) had not yet noted any dramatic developments on the Swiss job market. However, most companies that applied for short-time work during the month cited economic difficulties as the reason, according to Jura's economic minister, Stéphane Theurillat.
The figures show that in August, short-time work slightly decreased. Nevertheless, over a hundred companies with around 4000 employees have reportedly filed for short-time work in the canton since early September. The system in the canton is 'at its limit,' the canton's communication service confirmed.
Stéphane Theurillat is seeking a conversation with SECO to secure more funds for unemployment insurance and regional employment placement centers. He is also considering further support for companies beyond short-time work, as not all of the filers are currently on short-time work.
The economy is also under pressure due to weak economic conditions among other customers and the impact of US tariffs, which SECO had not yet noted any significant developments on the Swiss job market in connection with at the beginning of the month.
Moreover, these sectors were already under pressure due to reduced demand from China. This affects around ten percent of the working population in the canton.
The government council warns that without swift solutions to the customs situation, irreparable damage to the economy threatens. The canton's communication service plans to contact SECO to explore potential support for companies beyond short-time work.
The system in the canton is under immense pressure, with over 4000 people filing for short-time work. The companies that applied for additional support besides the affected employees are not specified, but a support conference between the Canton Jura and the Federal Office for Economy took place on August 24, 2020.
The strength of the Swiss franc is another factor affecting the economy, as the strong franc makes Swiss products more expensive for foreign customers. This, combined with the current economic difficulties, is causing significant challenges for businesses in Canton Jura.
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