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Portugal's job market thrives for youth but struggles with pay and stability

Young adults in Portugal lead Europe in job rates, yet long hours and low pay shadow the nation's labor success. Will new laws fix the imbalance?

The image shows an old map of the city of Portimão da Ericeira, Portugal, with text written on it....
The image shows an old map of the city of Portimão da Ericeira, Portugal, with text written on it. The map is detailed, showing the streets, buildings, and other landmarks of the area. The text on the map provides additional information about the city, such as its history, culture, and attractions.

Portugal's job market thrives for youth but struggles with pay and stability

Portugal’s labour market shows strong performance in key areas, particularly for young adults. The country’s employment rate stands at 79.6%, exceeding the EU average of 76.1%. Yet, wages and job stability remain areas of concern for many workers. With over five million workers, Portugal holds a significant share of the EU workforce. The nation ranks 12th in overall employment across the bloc. However, its success in youth employment is more striking: at 82.8%, the rate for 25- to 29-year-olds places Portugal seventh in the EU.

Portuguese employees work longer hours than most of their European counterparts. The average workweek reaches 39.7 hours, compared to the EU’s 37-hour norm. Only four countries report longer working weeks. Despite these figures, earnings lag behind. The average gross monthly salary sits at €2,068, well below the EU average of €3,317. Job security also raises questions, as nearly 15% of workers rely on temporary contracts. The government is now reviewing labour laws. Negotiations aim to revise over 100 articles of the Labor Code, potentially reshaping employment conditions.

Portugal’s labour market presents a mixed picture. High employment rates, especially among young adults, contrast with lower wages and longer working hours. Upcoming changes to labour legislation could bring further shifts to the country’s job landscape.

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