Labour market information: Portugal

NOTE: in view of the uncertainty associated with the continuing COVID-19 pandemic and, more recently, the war in Ukraine, the information provided is subject to a degree of risk in the forecasting of economic and labour market trends.

In this context of volatility, continual adaptation and resilience, both for businesses and organisations and for workers and the population in general, the only certainty is that the economy and the labour market – at national level and in the various regions – have been negatively impacted over the last 2 years, despite positive signs that Portuguese businesses are adapting in response to the new conditions and needs.

According to the INE (National Statistics Institute) Employment Survey, Portugal had a total resident population of 10 267 200 in the first quarter of 2022, comprising 47.1 % men and 52.9 % women.

Despite the current context, the active population has risen to 5 209 300 (up 3.3 % compared to the same period in 2021) and the employed population has risen to 4 900 900 (219 300 more jobs – up 4.7 % compared to 2021).

The labour market in Portugal appears to be withstanding the impact of the war in Ukraine and the surge in inflation, and has recorded development in line with economic growth in the first quarter of 2022. However, according to INE data, the rate of under-utilisation of labour was still 11.5 % (for the 16-74 age group), with almost half corresponding to underemployment of part-time and inactive workers available for work but not seeking employment.

The unemployment rate was 5.9 %, its lowest level for 10 years, reflecting the downward trend observed since 2014. However, women continued to be most affected by unemployment (6.5 %), youth unemployment (young people under the age of 25) rose to 20.6 % and long-term unemployment accounted for 46.2 % of the total. Unemployment during the pandemic was higher among young people and the lower skilled, and, unlike total unemployment, this trend has not yet been reversed.

According to the European Labour Force Survey (data for the fourth quarter of 2021), Portugal’s activity rate (75.9 %) was higher than the EU-27 average of 74.2 %. The participation of women in the labour market (73.5 %) was also higher than the EU-27 average of 69.2 %. The same is true when comparing those over the age of 65, as the activity rate in Portugal stands at 8.8 %, while the European average is only 6 %.

As far as new forms of work organisation are concerned, part-time work in the country is still quite limited (only 7.1 % of total employment compared to 17.8 % for the EU-27 in the fourth quarter of 2021), and is particularly underused by women (9.2 %) when compared to the average of 28.9 % female employment at EU-27 level.

During the pandemic, there was a significant increase in teleworking practices, which in the second quarter of 2020 covered 23.1 % of the employed population. However, with the return to normal there has been a gradual reduction in teleworking practices over time, with only 10.8 % of the employed population teleworking in the first quarter of 2022 – notably in the services sector, the Lisbon Metropolitan Area and the more skilled professions.

At the end of May 2022, the number of unemployed people registered with the employment services in Portugal stood at 296 394 (a decrease of almost 60 000 since the beginning of the year). Of these, 43.6 % were men and 56.4 % were women, and 49.1 % of them had been registered for more than a year.

Around 10.2 % of the unemployed registered in mainland Portugal were foreign nationals. 3 060 were EU citizens (particularly from Romania, Italy, Spain and Bulgaria), while 4 550 were from other Eastern European countries (particularly Ukraine – 4 191). More than 17 500 people from Portuguese-speaking countries, particularly Brazil (12 004), Cape Verde (1 456), Angola (1 997) and Guinea-Bissau (1 157), were also registered as unemployed.

In terms of the country’s employment profile (INE Employment Survey, first quarter of 2022), agriculture, animal production, hunting, forestry and fishing employed just 2.5 % of the labour force; industry, construction, energy and water employed 24.4 %, and services employed 73 %.

Portugal continued to develop towards tertiarisation and digitisation, with a particular emphasis on vehicle trade and repair (close to 20 % of employment in services), health and social support services (15 %) and education (13 %).

The hotels and restaurants sector (6.5 %), which accounted for more than a quarter of employment in services in 2019, was one of the worst affected over the last 2 years. However, it appears to be recovering now with growth of 20.5 % in this quarter compared to the first quarter of 2021, representing 45 000 more jobs. Information and communications also saw an increase of 21.7 % compared to 2021, with the net creation of 33 600 more jobs. The same is true for administrative activities and support services, which grew by 30 % (a further 38 400 jobs).

By contrast, the segments of financial and insurance activities and consultancy, scientific and technical activities decreased by 10.2 % and 4.7 %, respectively, compared to the same period in 2021.

The industrial, construction, energy and water sector, which had been on a trend towards recovery since the beginning of 2014, suffered significant losses in 2020 and 2021 in both manufacturing and construction, but now shows some signs of recovery – recording a net employment growth of 16 800 jobs in the manufacturing industry and 6 300 in construction in the space of a year.

Manufacturing industries (which represent 16.8 % of total employment), while not being one of the most dynamic sectors of the Portuguese economy, have nevertheless modernised and focused on innovation. They are showing signs of a capacity for regeneration in response to the new needs arising from the pandemic.  It is worth highlighting, in the current context, that the health cluster, including the pharmaceutical, moulds, plastics, electrical and electronic equipment industries, the textile industry and the emerging biotechnology sector are showing signs of vitality.

Traditional industries, such as footwear and clothing, have also committed to modernisation, innovation and internationalisation in recent years, resulting in more highly skilled new jobs being created. The year 2021 saw a record amount of textile and clothing exports – 4 % higher than in 2019 – and the footwear industry recorded strong growth in production and orders in the first quarter of 2022, which had a positive impact on employment development in that industry.

Projections for the period 2022-2024 reflect the continued recovery of the Portuguese economy following the shock of the pandemic, albeit in an external environment aggravated by the war in Ukraine.

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The level of unemployment has decreased in almost all occupational groups.  Portuguese companies face particular difficulties in recruiting workers in the following areas:

• information and communication technology (particularly IT engineers with very specific specialist profiles);
• contact centres/business support centres and shared services centres (encompassing sales, administration, human resources, accounting and management control functions), some professionals with very specific language skills which are difficult to find in Portugal;
• health (doctors and nurses with different specialisations);
• hotels, tourism, restaurants, bars and cafés;
• agriculture (seasonal employment), particularly fruit and vegetable picking;
• construction (plumbers, electricians and other skilled workers).

For vacancies offered by contact centres and shared services centres, knowledge of Portuguese is not necessary, since the working languages are English and the relevant native languages. There are also opportunities in the information technology sector for people who do not speak Portuguese. In other positions, language skills in Portuguese are essential, particularly in occupations requiring contact with the public.

There are workers who could move within Europe in the following areas:

• economics, management and other business science graduates (including accountancy);
• marketing, advertising and sales;
• secondary school teachers (in various subject areas);
• social sciences and humanities graduates (psychologists, social services staff, social workers, etc.);
• some areas of engineering and related activities (civil engineers, mechanics, electro-technical specialists, architects, etc.);
• tourism, hotel receptionists, travel/booking agents, flight attendants (aviation) and other travel assistants.

These workers have knowledge of at least English and/or French. There is scope for communication in Spanish, acquired informally.

Many workers are also open to mobility in other less skilled professions in:

• trade (shop assistants, cashiers and ticket clerks);
• cleaning services;
• administration;
• logistics (supply and warehouse employees);
• personal services (childcare workers or home helps without specific training).

However, in these cases any language skills are generally elementary.

The total population (aged 16 and over) of the North region was 3 084 300 (according to the INE Employment Survey for the first quarter of 2022). This is the most populated region in the country, accounting for 35 % of the total population.

The employed population was around 1 727 700, representing growth of almost 58.5 thousand jobs in a year.

After a period of instability between 2019 and 2021, the unemployment rate now stands at 5.4 %, which is below the national average and the lowest it has been in the last 20 years.

At the end of May 2022, 113 969 people were registered as unemployed (38.5 % of the national total), with 52.5 % having been registered for more than a year (long-term unemployed) and 35.7 % aged over 55.

In the North region, agriculture has been losing some of its importance (from both an economic and employment point of view), accounting for only 2.4 % of the region’s employed population in the first quarter of 2022. This figure stood at 5.6 % 2 years ago. Moreover, in the last quarter alone, the sector lost some 60 000 jobs.

The region is mainly characterised by a high degree of industrial specialisation (it is the most industrialised region of Portugal, with employment in the manufacturing industry accounting for 31.3 % of the employed population in the region), particularly in more traditional segments.

The structure of employment in this region is rather varied, involving three subregions with specific characteristics:

• the Porto Metropolitan Area, with a heavy concentration of services (particularly commercial) and some industrial centres with greater technological and knowledge intensity;
• a surrounding border (Cávado, Ave, Tâmega and Entre Douro e Vouga), which is more industrialised and open to the outside, and where industrial employment is above the national average; predominantly rural areas (Minho-Lima, Trás-os-Montes and Alto Douro), where employment is more concentrated in agriculture or non-commercial services.

Agriculture is largely based on family businesses. Vineyards are very important in the region (Douro, Minho-Lima and Cávado), which produces one of the most famous fortified wines in the world, Port, and table wines of world-renowned quality. Employment in this sector, which slowed down somewhat in previous quarters, showed a stabilising trend in the first quarter of 2022, with 2 000 more jobs compared to the first quarter of 2021.

The region’s heavily export-driven industrial base specialises in the following areas:

• the textile sector, particularly clothes manufacturing, which has managed to readapt to the new business models, invest in new technologies and differentiate itself through the quality of its products in international markets, as one of the country’s leading export sectors. This sector adjusted during the COVID-19 pandemic in order to produce masks and other personal protective equipment. Supply chain problems may now arise, which could affect orders placed with Portuguese companies, especially in the luxury product segment;
• the footwear industry, where production levels have increased, having a positive impact on employment. Concerns are centred on the supply of inputs, in particular the price, availability of raw materials and labour shortages in the face of strong demand;
• forestry, particularly high-quality cork agglomerates, wood products and a strong furniture manufacturing industry (with some challenges in terms of growth and sustainability);
• the manufacture of parts, materials and accessories for the automotive sector;
• the agri-foodstuffs industry, particularly dairy produce and wines.

The industry, construction, energy and water sector, which accounts for 31.3 % of total employment in the region – and in particular the manufacturing (especially production of motor vehicle parts) and construction industries – continued a downward trend, with more than 19 000 jobs lost within a year, thus emphasising the move towards tertiarisation of the economy in this region.

In the North region, 66.4 % of employment is now in the services sector, particularly in vehicle trade and repair (23.7 %), health and social support services (15.9 %) and education (14.7 %), the latter having seen the strongest growth (26 300 more jobs over the last year).

Hotels and restaurants (5.7 %) – the services segment worst affected by the negative impact of the pandemic – recorded the second highest employment growth in the first quarter of 2022, with more than 10 000 jobs created in the last year alone.

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In general there has been a reduction in the number of vacancies. There are nevertheless some recruitment needs in the following occupations:

• industry: welders, CNC operators and low-skilled workers for industry, metalworking industry/component assembly; in more traditional segments: seamstresses (in the textile sector) and specialised workers in the footwear industry;
• services: contact centre operators and business support centre operators (especially with fluent French or Spanish, although other languages may be requested), home helps and hairdressers;
• agriculture: low-skilled workers for agro-industry and some seasonal agricultural and forestry work, specifically in the north-east of the country.

For vacancies in contact centres/business support centres, knowledge of Portuguese may not be necessary, since the working languages are as a rule English and the relevant native languages. There may also be opportunities in the information technology sector for people who do not speak Portuguese, provided that they have a good command of English. In other positions, language skills in Portuguese are essential.

Workers are available in the following areas:

• primary and secondary school teachers (in various subject areas);
• nursery school teachers and childminders;
• recent graduates in general, particularly social sciences, humanities and business studies graduates; architects and urban planners;
• cleaners;
• light goods vehicle drivers;
• administrative service employees;
• miscellaneous personnel (particularly builders, assistants in various sectors and general service ancillary staff).

Graduates generally have language skills in at least English and/or French and/or Spanish. In some of the other professions, however, language skills, if any, can be very basic.

The total population of the Centre region was 1 946 200 (according to the INE Employment Survey for the first quarter of 2022).

This region had the second lowest unemployment rate in the country (5.4 %), together with the North, despite also being one of the regions worst affected by the pandemic (and by wildfires in previous years).  Employment levels have recovered, growing by almost 70 000 jobs compared to 2021.

At the end of May 2022, 38 619* people were registered as unemployed with the region’s employment services, with 46.3 % having been registered for more than a year (long-term unemployed).

In the Centre region, the services sector is the most important in terms of employment (66.8 %), particularly vehicle trade and repair (21.5 %), health and social support services (16.1 %) and education (16 %). In fact, this sector was the main contributor to the increase in employment in this region, with the creation of an additional 54 000 jobs over the last year, mainly through employment growth in hotels and restaurants, public administration and defence, compulsory social security and education.

Tourism grew again at the beginning of 2022, continuing the positive trend of previous quarters, and appeared to show some recovery in relation to the toughest period caused by the COVID-19 pandemic crisis. However, this development should be analysed with some caution, as the first quarter of 2021 was a period of recession in this sector.

The manufacturing sector (which now accounts for 30 % of employment in the region) also recorded employment growth over the past year, notably in manufacturing (24 300 more jobs compared to the first quarter of 2021). This arose particularly in, for example: paper paste/packaging, ceramics and glass, tools, metal furniture and taps, household appliances, moulds and plastics, and wool, which continue to show a degree of export potential.

There are two distinct profiles of industrial competitiveness and dynamism within the region:

• the inland area – specialising in labour-intensive industries;
• the coast – industries based on other non-metallic mineral products and basic metallurgical industries, which stand out because of their capacity to produce distinctive products.

Traditional and family-based agriculture has been declining in the region, accounting for just 3.2 % of employment and continuing to record significant falls, with 5 600 fewer workers than in the previous year. The sector is particularly important in the interior regions, where forestry is growing in importance, and in the West, where fruit and vegetables and wine products dominate (with a link to the agri-food industry).

The region’s economy benefits from a wide range of university-linked technology support and development structures (for example, in the areas of ceramics and glass, moulds and special tools, textiles and clothing, and biomass for producing energy), as well as units linked to the pharmaceutical industry, biomedicine, biotechnology and health (based in Coimbra), precision engineering and the use of information technology, etc.

The Centre has a quarter of the national border area and contains a fifth of the total border population, an ageing, isolated population mostly employed in agriculture.

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The Centre is one of the regions generating the greatest number of job vacancies, vying for leadership with the Lisbon Metropolitan Area.

Opportunities exist in the following areas:

• personal care (including home helps, healthcare assistants and childcare workers);
• health – all professional groups;
• distribution, logistics and transport;
• pharmaceutical industry, including research;
• civil construction: skilled workers;
• machine operators;
• unskilled agricultural workers (seasonal employment), particularly fruit and vegetable picking and cultivation of trees and bushes.

There is also a need for skilled professionals (with language, programming and other technical skills) in the segments of information and communication technology (ICT) and contact centres.

These jobs are particularly significant in the interior of the region, particularly in Castelo Branco, Arganil, Guarda, Viseu, Covilhã and, more recently, Fundão. In terms of ICT, however, businesses tend to be located on the coast (Aveiro – Coimbra – Leiria).

A knowledge of Portuguese is very important, with English being used as an alternative working language, particularly in ICT and in the contact centres.

Workers are available in the following areas:

• unskilled labourers in mining, construction, manufacturing and transport;
• sales staff;
• administrative profiles: secretarial and office staff, finance and business staff.

These workers have limited language skills and mainly come from the following economic activities:

• manufacturing and logistics;
• property, administrative and support services;
• wholesale and retail sales;
• public administration, education, health and social support services.

There are also recent graduates who are potentially mobile throughout Europe, with qualifications in the areas of:

• engineering, mathematics and physics;
• social sciences and humanities (i.e. psychologists and social assistants/social workers).

This group has language skills, at least in English and/or French (with an increase in those with a knowledge of German and Spanish), and is more concentrated in the district capitals and along the coast.

The total population of the Lisbon Metropolitan Area is 2 380 700 (according to the INE Employment Survey for the first quarter of 2022).

This is by far the most densely populated region in the country, accounting for 27 % of the population in just 3.3 % of the national territory, and is the driving force behind national development, with 36 % of the country’s businesses and 41 % of its employees working in those businesses. It also offers a diversity of landscapes, activities and cultures, making it a dynamic and highly attractive region.

With an unemployment rate of 6.8 % (above the national average of 5.9 %), this region has seen continued employment growth over the last year, with an additional 46 000 jobs created. Net gains in the areas of information and communication (an additional 32 600 jobs), construction (an additional 14 700 jobs) and hotels and restaurants (an additional 10 600 jobs) contributed decisively to this growth.

At the end of May 2022, 101 061 people were registered as unemployed with the region’s employment services, with 46.4 % having been registered for more than a year (long-term unemployed).

In terms of forms of work organisation, this is the region of the country with the highest indices of contractual stability (contracts of indefinite duration account for a large proportion of the employed population) and where self-employed workers are the least represented.

It was also the region that most rapidly embraced the (full or partial) remote working arrangements introduced during the pandemic, probably owing to the high concentration of skilled services in the region. That trend has continued in this quarter, with 21.1 % of the employed population in the region working remotely, compared to the national average of 10.8 %.

This region is also marked by very substantial commuting to work by thousands of people, the main (though not only) source of attraction being the municipality of Lisbon.

A sectoral analysis of employed labour gives a clear idea of the region’s profile: agriculture, animal production, hunting, forestry and fishing have residual importance; industry, construction, energy and water account for 15.5 %, while services represent 84 % of the region’s employment.

This region in fact has the greatest concentration of services, particularly those provided mainly by the public sector, which represent 27.8 % of employment: public administration, defence and social security; education; health and social support services. The central departments of most state bodies are located in Lisbon. The region also has the greatest concentration of public and private higher education establishments (nearly one-third of the national total), and a large number of research and development institutions.

The following also stand out due to their levels of employment and economic relevance:

• banks and other financial institutions;
• business services, including consultancy, accounting, computer assistance and advertising;
• companies managing national infrastructure in the energy (electricity, gas and other fuels), telecommunications (fixed, mobile and data networks) and audiovisual (main national TV and radio stations and written press) sectors, air, land and sea transport and associated logistics;
• trade, tourism, hotels and restaurants, which represent close to 20 % of employment in the region;
• tourism activities specialising in the provision of services for the corporate and not-for-profit sector – conferences and events – and the culture and sports sectors;
• private health services;
• some significant manufacturing industries (particularly the automotive industry on the Setúbal peninsula), with a strong export component.

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Opportunities exist in the following areas:

• metalworking: particularly toolmakers, construction metalworkers and welders;
• electromechanics: particularly industrial electromechanics;
• civil construction: mainly carpenters, plumbers, electricians, bricklayers/tilers and painters;
• information technology: computer system designers, network specialists, software and application analysts and programmers, web and multimedia programmers, among others;
• health: doctors and nurses;
• motor vehicle repairs: mechanics and motor vehicle repairers;
• personal services: home help;
• commercial sales representatives;
• contact centres and shared services centres: workers who are more or less specialised and/or with knowledge of specific foreign languages;
• transport: heavy goods vehicle and passenger transport drivers.

A knowledge of Portuguese is essential for most occupations. English is the second most sought-after working language. French, Spanish, Italian and/or German may be an advantage, however, particularly in the hotels and restaurants sector.

In specific areas such as contact centres, a knowledge of some specific languages at C2/native level is often sought, together with English, as the lingua franca between the various nationalities. There are also opportunities in the information technology sector for people who do not speak Portuguese (provided that they have a good command of English).

In these segments the option for teleworking, in rotation with office-based working, is the current rule and appears to be a future trend. At the moment, however, it is only applied to nationals and legal residents in Portugal (with a Portuguese tax identification number, which allows contracts of employment to be entered into).

Workers are available in the following areas:

• graduates in social sciences, humanities and business sciences (psychologists, sociologists, historians, managers, economists, marketers, media professionals, etc.), particularly young recent graduates;
• basic education teachers (primary) and secondary school teachers (in various subject areas);
• administrative staff;
• sales executives;
• unskilled workers in certain manufacturing industries;
• general workers (particularly young people with basic and secondary education);
• cleaners;
• light goods vehicle drivers;
• shop assistants.

Graduates and more highly skilled professionals generally have language skills, at least in English and/or French and/or Spanish. Less skilled professionals usually have a more lower level of education and limited language skills.

In the first quarter of 2022, the total population of Alentejo was 603 400 (according to the INE Employment Survey for the first quarter of 2022). It is the least densely populated region in the country (with only 22.3 inhabitants/km²), representing over one-third of the national territory, but only 6.9 % of its population.

Currently not a congested area, it is unspoilt and safe, rich in heritage and culture and with competitive, differentiating and sustainable potential.

Alentejo is nevertheless not a single region: it is made up of at least four regions (Norte Alentejo, Alentejo Central, Baixo Alentejo and Alentejo Litoral), with certain specific features, but also with common socio-economic characteristics.

Although it is the region with the country’s lowest activity rate (59.6 % compared to the national average of 59.9 %), it also currently has the lowest unemployment rate: a mere 5.1 %.

Given that is not congested and has a small active population, it was also among the regions least affected by the pandemic in terms of employment, growing by more than 27 000 jobs compared to the first quarter of 2021.

At the end of May 2022, 12 811 people were registered as unemployed with the region’s employment services, with 5 860 (45.7 %) having been registered for more than a year (long-term unemployed) and nearly 13 % under the age of 25.

The local production base is made up of world-renowned products: cork, ornamental stones, wine, olive oil and fresh vegetables. Most of the region’s land is devoted to agriculture (generally connected with cattle farming). This is becoming increasingly specialised and mechanised, due in part to the large size of holdings in the region (over 60 hectares on average). The predominant activities are cereals, vines and olives, fruit orchards, cattle (‘carne alentejana’ or ‘Alentejo meat’) and pigs (‘porco preto’ or ‘black pork’) and, along the coast, large areas of fruit crops such as strawberries, raspberries and blackberries. Forestry (and in particular cork oak and cork extraction) is also an activity of particular economic importance for Alentejo: 46 % of the world’s cork production is Portuguese and the sector employs 8 310 people.

Together with these traditional strategic sectors, tourism, aeronautical activities and energy stand out in the most recent employment trends.

The secondary sector, representing 20.8 % of the employed population – 66 % in manufacturing industries and 22 % in civil construction – is quite dynamic. There is some industrial specialisation, associated with agri-foodstuffs (manufacture of cheese, wine and smoked meats, with PDO certification), chemicals and oil derivatives (the latter associated with the Sines industrial complex), automotive and aircraft components, and electronic components.

The development of accessibility infrastructure has been an important factor in attracting international investment to this region.

The services sector (which accounts for nearly 72 % of employment) was one of the worst affected by the COVID-19 pandemic, but has already seen an increase in the number of jobs over the past year (28 500 more) – with a particular focus on education (8 300 more jobs), health and social support services (7 800 more jobs) and wholesale and retail trade, and motor vehicle and motorcycle repair (7 100 more jobs).

Cross-border commuting with the Extremadura and Andalusia regions of Spain is not very significant, apart from in the municipalities of Serpa, Campo Maior and Elvas. This mostly involves agricultural workers.

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Skilled staff are required in the following occupations:

• agronomists
• agri-food engineers
• computer programmers
• agricultural machinery repair technicians and operators
• agricultural workers for fruit picking (seasonal, between March and October)
• electromechanical and electrical maintenance technicians
• highly-skilled chefs
• fish processing and cannery workers
• butchers
• civil construction workers.

Workers are available in the following areas:

• unskilled workers in services and trade;
• office staff;
• protection and security officers;
• home help.

These workers generally do not have language skills or, when they do, they are very limited.

It is also difficult for the following to find work in the region (although this is on a downward trend):

• teaching staff (infant teachers, teachers in the second and third cycles of primary education and in secondary education);
• highly skilled professionals in the social sciences (social services staff and psychologists) and in education.

These professionals generally have language skills in at least English and/or French, and in some cases Spanish.

The total population of the Algarve region was 365 600 and the employed population approximately 205 600, representing an increase of 13 300 jobs in relation to the same period in the previous year (according to the INE Employment Survey for the first quarter of 2022).

The unemployment rate was 7 %, the highest in mainland Portugal, still reflecting the severe impact on the region, particularly in tourism and hotels and restaurants, of the pandemic and consequent lockdown measures, movement and travel restrictions and protection of public health applied throughout Europe and the world (the rate had been 10.2 % in the first quarter of 2021).

The normally seasonal nature of unemployment in this region should be emphasised. The pressure caused by the arrival of hundreds of thousands of tourists every year, particularly between June and September, normally boosts tourism activity and the hotel trade and is reflected in an increased demand for trade and services staff, which contributes to an upturn in employment during this period, followed by a sharp drop in the subsequent quarter.

At the end of May 2022, 12 032 people were registered as unemployed with the region’s employment services, of whom 47.7 % were long-term unemployed but only 8.9 % were under the age of 25 (corresponding to the lowest relative share of registered unemployed young people in the country).

• With regard to changes in the employed population by sector of activity, compared to the first quarter of 2021 there has been an increase in employment in wholesale and retail trade, and motor vehicle and motorcycle repair, which created an additional 8 300 jobs (out of a total of 13 300 jobs created in the region).

The reality of employment in the Algarve is still a low intensity in the knowledge sector, a heavy concentration in personal services and a still very significant weight of unqualified work (and unemployment).

Apart from the hospitality sector, the business structure consists almost exclusively of small and micro-enterprises with not very highly skilled human resources.

However, this region has seen an improvement in the educational level of its labour force, the number of people having completed higher education improving compared to other regions. The University of the Algarve is an important centre for cultural, scientific and technological development, with strong links to the business sector. It is a dynamic university that responds to the region’s development strategies by promoting areas of learning and research that are relevant to the most important regional production sectors.

The economic structure of the Algarve is based on six strategic sectors associated with the region’s natural resources: hotels, restaurants and tourism, health, ICT, creative activities, the agri-food industry and maritime activities.

Many companies are involved in trade, car rental activities and also in hotels and restaurants (which together account for almost 40 % of employment in the region), which emphasises the significance of tourism as a polarising element of endogenous development of the Algarve.

Cross-border trips in the border area with Spain (with the Andalusia region) are still not very significant, mainly because of the similar economic structure of the two regions. Most Portuguese cross-border workers who work in Andalusia do so in hotels and restaurants, fish canning and agriculture.

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Employers in the region have difficulty recruiting:

• in the health sector, doctors, nurses and hospital assistants or their equivalent;
• agricultural labourers specialising in the picking of fruit, in particular soft fruit (raspberries) at specific times of the year – particularly February to June;
• in professions associated with ICT and in the field of electronic engineering;
• workers in the tourism and hotels and restaurants sectors.

A knowledge of Portuguese is essential for most jobs. A knowledge of English, French, Spanish and/or German may be an advantage in the hotels and restaurants sector and for occupations requiring contact with the public.

Surplus workers are found in the following occupations:

• office staff and other unskilled workers in services and trade;
• cleaners;
• light goods vehicle drivers.

Given the highly seasonal nature of tourism activities in the region, there are generally workers available in the tourism, hotels and restaurants sector from October to April.

There are also non-specialist workers who, although they have no significant professional experience, are available to work in factories (mass production, assembly lines).

In terms of economic activities, unemployed workers mostly come from hotels and restaurants (November to March), trade and other service activities, property, administrative and support service activities.

Many of these workers have some language skills, mainly in English, but these are sometimes limited and have been obtained informally (mainly orally).

According to the Employment Survey for the first quarter of 2022, the total population of the Azores stands at 203 200. The Azores continues to be the youngest region in the country: 41 % of the resident population are less than 35 years of age (the national average is 34.7 %).

The economically active population continues to have the lowest percentage of graduates in the country (22.8 %, whereas the national average stands at 34.3 %), maintaining a relatively low qualification structure.

The unemployment rate is 6.6 %, down 1.6 % from the previous quarter.  Unemployment in the Azores has in fact fallen very significantly in recent years, compared to the rate of 18.5 % recorded in the first quarter of 2014.

At the end of May 2022 (IEFP data), 6 033 people were registered as unemployed with the region’s skills and employment agencies, 37.2 % of whom were young people under 35 years of age, showing that professional experience continues to be a critical factor for businesses when hiring. Long-term unemployment (those registered for more than a year) represented 37.3 % of the total unemployed.

The region’s economy is mainly based on the tertiary sector, which accounts for 75 % of employment. In this sector, activities mainly from the public sector are particularly important (public administration, social security, education, health and social support services), representing 43 % of total employment in the region. Activities in vehicle trade and repair (17.3 % of the employed population) and hotels and restaurants (11 %) are also very important for employment in the region, leveraged by tourism activities which have grown steadily in recent years, in particular those related to rural, nature and adventure tourism.

In the secondary sector (16.5 % of total employment), manufacturing (7.4 % of total employment) plays a fairly important role, particularly in the agri-food industry, with export-oriented activities such as production of tea and dairy products (particularly yoghurt, cheese and butter), together with other activities which are mainly geared towards the regional market, such as tobacco and wine. Civil construction is also rather significant (6.5 %) in the region’s employment.

Finally, accounting for 8.3 % of employment and essentially consisting of agriculture and animal production, the primary sector remains significant in the region’s economy.

This sector particularly involves the production of pineapples, bananas, tea, beef (Azores demarcated region) and by-products, intended mainly for local and mainland consumption.

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Workers are needed in the following sectors:

• civil construction (skilled workers such as carpenters, plumbers, electricians, bricklayers, metal workers);
• contact centres/customer support services;
• hotels and restaurants (limited in the 2020 summer season);
• trade.

A knowledge of Portuguese is essential for all these occupations. A knowledge of English, French or other languages, such as German, may be an advantage for the tourism sector (nature and outdoor), hotels and restaurants – and, more recently, customer support services (contact centres), where a command of English in particular is required.

Unemployment is most significant in the following activities:

• public administration, education, health and social support;
• civil construction;
• trade;
• property, administrative and support service activities;

and for the following occupations:

• cleaners;
• sales staff;
• workers in waste and other basic services;
• unskilled labourers in mining, building, manufacturing and transport;
• office staff, secretaries and data processing operators.

The more highly skilled professionals generally have language skills, at least in English. The less qualified have weak linguistic skills.

The total population of Madeira was 219 000, (according to the INE Employment Survey for the first quarter of 2022). 37 % of the resident population was under 35 years of age (above the national average of 34.7 %) and 25.7 % of the labour force had completed higher education.

The unemployment rate stood at 7.5 % in the first quarter of 2022 – the highest in the country – having reached 11.2 % in the fourth quarter of 2020.

At the end of May 2022, 11 869 people were registered as unemployed with the region’s employment services, 27.2 % of whom were under the age of 35. Long-term employment is the highest in the country: 60 % of the unemployed have been registered for more than a year (national average: 49 %).

It should be noted, however, that the region has the second highest activity rate in the country (60.2 % in the first quarter of 2022) and that employment, which had been recovering steadily since 2014, fell somewhat during the pandemic crisis but has since been recovering, with an additional 4 700 jobs created within a year.

The region’s economy is mainly based on the tertiary sector, which accounts for 83.4 % of total employment. In this sector, public administration, social security, education, health and social support services are particularly significant, representing 39.3 % of jobs in the region, followed by hotels and restaurants (13.8 %) and vehicle trade and repair (13.5 %). Tourism is in fact the regional economy’s main driver and its greatest source of revenue.

Around three-quarters of the archipelago’s population live on the south coast, mainly in the capital city, Funchal. Much of the economic activity occurs in this area and most hotels are situated here.

The secondary sector represents 12.7 % of the employed population in the region. Civil construction is also significant (7.7 %).

In manufacturing, which has been fairly insignificant in the region (just 3.6 % of employment), export-driven craft industries such as embroidery, tapestry and wickerwork coexist with other activities mainly geared towards the regional market, such as milling, breadmaking and confectionery, dairy products, beer, tobacco and wine.

Finally, in the primary sector – which has been losing its relative importance and in the quarter in question accounted for 3.9 % of employment – agricultural activity is almost exclusively important, involving banana production and the internationally known Madeira wine (a fortified wine).

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Employers in the region have difficulty recruiting:

• skilled staff in:
  • commercial management, marketing and sales;
  • health (nursing, physiotherapy, pharmacy, veterinary sectors);
  • engineering (IT, electrotechnical, environmental);
  • accounting (certified accountants);
• workers with vocational/intermediate training courses in:
  • civil construction (designers, welders, carpenters, upholsterers, ironworkers, backhoe loader operators);
  • confectionery;
  • property and estate agents;
  • hairdressers;
  • car mechanics
  • pharmacists;
  • refrigeration mechanics;
  • occupational and environmental hygienists;
• workers without specific qualifications, particularly in civil construction: experienced professionals (metalworkers, bricklayers, tilers, plasterers and glaziers).

A knowledge of Portuguese is essential for most jobs. A knowledge of English, French, Spanish and/or German may be an advantage in the hotels and restaurants sector, particularly in occupations requiring contact with the public.

Unemployed and available workers are found in the following occupational areas:

• catering: cooks, waiters and bar staff, food preparation assistants;
• trade: shop assistants, salespeople and general staff;
• administration: office staff, secretaries and data processing operators;
• personal services: hairdressers and beauticians;
• cleaners and waste disposal workers, including domestic cleaners, road sweepers, office assistants, goods distributors and other general-purpose workers;
• unskilled workers in the mining and processing industries, building and transport.

These workers generally have some language skills, particularly in English. Some workers have a limited knowledge of French and German.