Recruitment Portugal

UNEMPLOYMENT IN PORTUGAL

Even though Portugal is one of the smallest and least developed countries in the EU, it has one of the fastest growing economies. This is based on traditional industries such as textiles, clothing, footwear, cork and wood products, wine, porcelain and earthenware. It has one of the youngest workforces in Europe with low labour costs. Unemployment was at 7.7% toward the end of 2005.

Absenteeism from work is rare, there is considerable labour mobility and longer hours are worked here than in most industrial countries. Employment in agriculture accounted for nearly a third of the work force twenty years ago, but this stood at only 5% in the mid 1990s with a shift being made to the services sector which now accounts for over 55% of the work force.

There are also a high number of women employed in Portugal, with current figures standing at 61.9% which is 2.3% higher than the EU average.

The unemployment rate in Portugal showed a steady decline from 1986, standing at only 3.9% in 1992. It climbed when the economy went into recession in 1993 and reached its peak of 7.5% in 1996. Job creation schemes meant that the rate fell to 6.5% in 1997 and compared very favourably with 10.7% which was the rate quoted for the EU as a whole.

During 1998 the country had the second largest decline in unemployment and recorded the third lowest rate in the EU. Strong economic growth and the effect of Expo 98 meant that the rate continue to decline over the next three years. There is however concern about structural unemployment with 37% of unemployed workers without work for over a year in 1999. There is now considerable restructuring occurring in manufacturing industries such as clothing, textiles and footwear. Also various schemes funded by the EU and supported by the Government have been successful in improving youth employment ad reducing long term unemployment. The Government is committed to training schemes and improving job skills to meet business requirements in the future.