Particularly since the 2008 recession, Portugal has been dealing with the issue of unemployment. However, despite most thinking otherwise, Portugal has been able to tackle large degrees of unemployment, with a major dip in 2014, after reaching over 17%. As of August 2022, the unemployment rate stands at around 6.6% in Portugal, below the EU average.
However, the same cannot be said about youth unemployment. Although significant progress has been made, in Portugal, youth unemployment stands at 16.7% in August 2022. This is above the EU average of 13%.
Still, Portugal has a social security system that offers unemployment allowances.
Guide to Working in Portugal
Unemployment Rates in Portugal
In June of 2022, the unemployment rate stood at 6.1% in Portugal. This is below the average Eurozone rate for this period of 6.6%. However, the unemployment rate in Portugal decreased to 5.7% in July of 2022.
Back in august 2020, the unemployment rate took a hit due to the Covid-19 pandemic, rising to 8%. It improved throughout 2021 to around 6% to 7% and then fell below 6% in early 2022.
Unemployment rates in Portugal have been decreasing since 2013, although it rose again during the Covid-19 pandemic.
Youth Unemployment in Portugal
Portugal is way above the EU average for youth unemployment, unfortunately. Youth unemployment stands at 13% in the EU. However, in Portugal, youth unemployment stands at 16.7% in August 2022.
It has, however, reduced in the last year. In September 2021, Portugal’s youth unemployment rate was 23.7%. Back in 2015, youth unemployment in Portugal was 35%, so progress has been made.
Does Portugal have a high unemployment rate?
Portugal’s unemployment rate is not higher than the EU average. Countries such as Spain (14.7%), Greece (14.8%), and Italy (9.8%) have higher unemployment rates. However, Portugal has a really high youth unemployment rate at 16.7% in August 2022. This is much higher than the EU average of 6%.
Unemployment Benefits in Portugal
The Portuguese Social Security system secures citizens’ basic rights and ensures equality in opportunities, providing support measures such as unemployment allowances, paternal leave, and other financial support. The Social Security system is valid for Portuguese and foreign citizens who make contributions.
Portugal’s Social Security system has multiple types of unemployment benefits. Unemployment benefits usually pay 65% of your earnings. However, the minimum monthly rate is €439, and the maximum is €1,097.
Residents can access the main unemployment benefit if they have lost their job or come to the end of a contract. However, you must be registered as a job-seeker and have worked for at least 360 days in the 24 months before you lost your job.
Another type of unemployment benefit is the social unemployment benefit. You might qualify after either your regular unemployment benefit has run out or you do not meet the conditions for unemployment benefit. You need to have worked for 180 days in the one year before becoming unemployed.
In Portugal, you also have a partial unemployment benefit. To access this, you need to have already received unemployment benefits and begin working in a part-time or self-employed job. The earnings from this job must be lower than the amount of the unemployment benefit.