Swiss unemployment hits highest level in over 3 yrs

* Unadjusted rate at 3.6 pct, highest since March 2006

* Season. adjusted rate at 3.8 pct, highest since Aug 2005

ZURICH, July 8 - Unemployment in Switzerland rose more than expected in June to its highest level in over 3 years as the deep recession forced more companies to axe jobs.

The unadjusted unemployment rate rose to 3.6 percent from 3.4 percent in May, the State Secretariat for Economic Affairs (SECO) said on Wednesday. This was the highest since March 2006.

When adjusted for seasonal swings, the unemployment rate jumped to 3.8 percent from 3.5 percent in May, the highest adjusted rate since August 2005.

Both rates were 0.2 percentage points higher than economists' median forecast in a Reuters survey. <ECONCH>

The total number of unemployed rose by 5,125 on the month to 140,253 in June -- also the highest figure since March 2006. The number of vacancies rose to 14,855 in June, though much of the rise was due to change in the statistics.

The KOF Swiss economic research institute forecasts the unemployment rate will hit a post-war record next year at around 6 percent as Switzerland looks set to recover only slowly from the deepest recession since 1975.

The Swiss government has taken some steps to mitigate the impact of the economic slump on the labour market.

It extended the use of short-time work -- a subsidised option for firms to reduce work hours without laying off staff -- and added support measures for young people without a job.