Swiss Watch Jobs Slip Amid Global Headwinds

Employment Slides After Three Years of Growth

Employment in the Swiss watch industry fell in 2025 for the first time since 2021. The workforce shrank by 835 positions, a decline of about 1.3% from 2024, according to the Convention Patronale de l’Industrie Horlogère Suisse. The employer association links the drop to a demanding economic backdrop. Lower volumes and softer global consumption cooled hiring and led some firms to trim staff.

Even so, the industry remains a major pillar of the Swiss economy. It supports roughly 65,000 jobs and ranks among the country’s top five export sectors. After several strong years, companies now face a period that rewards tight management and careful planning. Brands and suppliers must match production to demand more closely. They also need to protect know-how that took decades to build.

Swiss watch industry jobs have increased since 2005 but fell sharply in 2009. Source: Convention Patronale de l’Industrie Horlogère Suisse.

Short-Time Work Cushions the Blow

To avoid deeper cuts, many firms turned to Switzerland’s short-time work program, known as RTH. About one in four companies used the tool this year. The program lets employers reduce hours while keeping teams intact. Authorities extended its maximum duration to 24 months from 18 months as demand stayed weak in some segments.

Industry leaders say the measure helped preserve skills and continuity. It also prevented a faster rise in unemployment. However, they warn that pressure could grow when support tapers. If demand does not improve, some businesses may have to scale back production lines. Therefore, the next year could test how well the sector adapts to slower growth.

The Convention Patronale notes that many firms already adjusted schedules, inventory, and investments. Yet, the balance remains delicate. A long dip in orders would limit the room to maneuver, even with flexible staffing tools.

Trade and Geopolitics Weigh on Exports

Global conditions added stress throughout 2025. Conflicts in the Middle East and Ukraine created uncertainty and disrupted consumer sentiment. Economic growth cooled across parts of Europe and, notably, in China. As a result, demand for Swiss watches softened in several key markets.

Trade frictions also played a role. The United States is the largest single-country market for Swiss watches, taking nearly a fifth of exports. Fluctuating tariff rates on Swiss goods complicated shipments earlier in the year. In November, Switzerland and the U.S. agreed to lower those rates to 15% from 39%. That step should help stabilize flows, although it will take time for effects to show.

Through October, Swiss watch exports decreased by 1.6% compared with the same period in 2024, reaching CHF 21.2 billion. The pullback was not dramatic. Nevertheless, it reminded companies that the post-pandemic surge has given way to a more normal cycle.

Lessons From Recent History

The last annual decline in jobs came in 2021, after COVID-19 shutdowns and travel bans hit sales. The sector recovered quickly in 2022 and 2023 as stores reopened and tourism returned. Prices for the most sought-after models spiked on the secondary market before cooling. That heat faded, and prices then settled at levels closer to long-term trends.

The Global Financial Crisis shows how quickly conditions can change. In 2009, Swiss watch employment fell by almost 8%, or more than 4,000 jobs. That period forced a tough reset. Since then, however, the industry has added about 15,000 jobs. The long climb underscores the sector’s resilience and its capacity to innovate.

History also suggests that brands who invest through downturns often emerge stronger. They refine collections, strengthen relationships with suppliers, and improve service networks. Consequently, they can grow share when demand improves. Many watchmakers appear to be following that playbook today.

What to Watch in 2026

Looking ahead, several levers could shape the outlook. First, tariff relief in the U.S. may support shipments into the largest destination market. Second, any rebound in China and parts of Europe would lift volumes. Third, stable energy and logistics costs would help margins. On the other hand, prolonged conflicts or fresh trade barriers would weigh on sales.

Companies are preparing on many fronts. They are streamlining portfolios, aligning production with confirmed orders, and accelerating digital tools. Moreover, they are investing in craftsmanship training to safeguard rare skills. Sustainability and traceability also remain priorities, as consumers ask for greater transparency.

The industry has navigated bigger storms. It kept core expertise intact while modernizing manufacturing and expanding global distribution. If demand steadies and support programs phase out smoothly, employment could stabilize. Yet, discipline will matter. Brands that stay close to clients, manage inventories well, and control costs should be best placed when growth returns.