Portugal has the second greatest reduction in employment rate in the EU

Between February 2020 and March 2022, Portugal recorded a reduction of 0.8 percentage points in the unemployment rate, the second greatest in the European Union and the fourth greatest among the OECD countries. According to data disclosed by the OECD, Portugal was one of the countries where the recovery of employment was the highest when compared to the pre-pandemic period, above the EU average of -0.5 p.p..

According to the Minister of Labour, Solidarity and Social Security, Ana Mendes Godinho, these results reflect the investment in protecting and enhancing jobs, especially the success of the measures adopted by the Government during the pandemic.  

According to data disclosed by the Statistics Office INE on 11 May, in the first quarter of 2022, the population employed (4,900,900 people) increased 0.4% (21.9 thousand people more) when compared to the previous quarter, and 4.7% (219.3 thousand) when compared to the same period in 2021, with a growing participation of women. The unemployment rate was 5.9% (-1.2 p.p. compared to 2021 and -0.4 p.p. in cascade).

 More equality in work and a decrease in youth unemployment

These indicators reflect the signs of recovery in the Tourism sector, with an impact on youth unemployment. The unemployment rate was 20.6% (-3.5 p.p. on 2021; -2.8 p.p. in cascade), which represents around 14 thousand less youths unemployed since the previous quarter. 

 In the last quarter, a new record of workers with open-ended contracts was hit (3,481.3), 196 thousand up on 2021 (+6.0%) and 1.2% more in cascade. The rate of youths of who do not study, work or are in vocational training dropped 3.3 p.p. when compared to 2021 and stands at 9.1%. In the first quarter of 2022 there were 190.4 thousand youths in these conditions, 71 thousand less than in 2021. These figures reflect the importance of continuing to adopt measures to counter precariousness, which affects youths most of all.

 In the first quarter of 2022, the number of women employed (2,430,400) increased (+115 thousand) on 2021 (+5.0%).

 The activity and inactivity rates are on an upward trend, with the active population (5,209,300) increasing 168 thousand when compared to 2021 (+3.3%). The inactive population is still on a downward trend (5,057,900), -178 thousand compared to 2021 (-3.4%).