By Brenna Hughes Neghaiwi
ZURICH (Reuters) - Swiss payrolls grew in the second quarter as strong services more than offset a drop in industrial employment, which was hit by the Swiss franc's surge, Federal Statistics Office data showed on Tuesday.
Overall employment rose 1.2 percent from a year earlier to 4.244 million due to 50,000 more service jobs.
Public health and social affairs boosted employment by 26,000 jobs, while pharmaceuticals and telecommunications both increased their payrolls in the high-single-digit percentage range. Foods and tobacco production offered 1,000 more jobs.
Industry lost 2,000 jobs out of just over 1 million.
The export-reliant industry has struggled to sell goods in the euro zone since the Swiss National Bank unpegged the franc from the euro in January, sending the safe-haven currency soaring.
Manufacturing and construction were particularly hard hit, with employment declining 0.3 and 0.1 percent respectively.
Manufacturing of rubber and plastics, metal products and electronic equipment showed some of the largest decreases: employment declining 2.3 percent for plastics and metals and 3.5 percent for electronics.
Switzerland's largest lobby for the engineering, electrical and metal industry said last week the strong franc would continue to cost jobs in its sector. A fifth of companies told the lobby they would shift production abroad if the franc remained so strong. [ID= L5N10U2R1]
The euro (EURCHF=) now trades around 1.087 francs, below the 1.20-franc floor the Swiss central bank once tried to defend but well above the low of 0.85 it briefly touched in January.
In hospitality, another sector sensitive to foreign exchange rates, employment fell 0.7 percent year-on-year, with 1,000 fewer people employed.