Portugal Unemployment Rate Hits Fourteen-Year Low
The unemployment metric decreased by 0.4 percentage points compared to the prior year, surpassing government projections of 6.1 percent included in the 2026 state budget proposal.
Annual average unemployment figures totaled 337,100 individuals in 2025, representing a 4 percent decline—approximately 14,000 fewer people—from the preceding year.
Employment surged to unprecedented levels over the past decade, with INE calculating that the average annual employed population approached nearly 5.3 million in 2025, reflecting a 3.2 percent increase, or roughly 163,000 people, compared with 2024.
Remote work arrangements continued expanding their footprint, with 21.2 percent of employed people, or about 1.1 million workers, working from home using information and communication technologies in the final quarter of the year.
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