Unemployment in Switzerland rose to its highest level in more than 11 years in September as more service companies shed jobs, data showed on Wednesday. But economists noted signs the sharp deterioration of the Swiss labour market may be easing and unemployment may avoid setting a post-war record high.

The Swiss unemployment rate rose to a non-seasonally adjusted 3.9 percent in September from 3.8 percent the previous month, the State Secretariat for Economic Affairs said on Wednesday. When adjusted for seasonal factors, the unemployment rate stood at 4.1 percent after 4.0 percent the previous month.

The unadjusted rate was the highest since January 2006, the seasonally-adjusted level was the highest since April 1998. Most experts expect unemployment to rise well into 2010 despite recent signs Switzerland is moving out off its deepest recession in more than three decades.

Copyright Reuters, 2009