Comparison Tool

Comparison Tool

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Overall score

Score by Indicator

in 2016 5.7
0 2.5 5 7.5 10

Key drivers

Labour market participation

Labour market participation rates are expected to increase this year, helping to offset a declining working age population.

Talent mismatch

While talent mismatch remains an important issue for Portuguese businesses, long-term unemployment has declined, reducing the talent mismatch score.

Wage pressure in high-skill industries

Wage dispersion between high- and lower-skill industries has declined towards normal levels, driven by weak wage growth in several high-skill sectors.


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View from the ground

Paula Baptista, Managing Director, Hays Portugal

After several years of instability, the Portuguese economy appears to have finally entered a positive cycle and this has been reflected in numerous growth opportunities for the labour market. Portugal has proved to be a preferred destination for foreign investment and the opening of several shared service centers has put some salary pressure on highly sought-after jobs or skills. Talent mismatch remains a big issue for Portugal but it is starting to be addressed, as the educational system seems to be making an effort to adapt its academic offering to the needs of the labour market.

Paula Baptista, Managing Director, Hays Portugal

Country Profile

Eight years after the global recession, Portugal’s economy remained 4 per cent smaller in 2016 than at the peak reached in 2008.

As Portugal’s economy recovers, there are several labour market issues that will pose complications. For example, the country’s high long-term unemployment, last measured at over 6.2 per cent and one of the highest among countries featured in the Hays Global Skills Index, means that many people will have seen their skills erode the longer they spend out of work. In addition, while a rising labour market participation rate may help offset the challenges of a declining working age population in 2017, in the years to come the country’s demographics could cause problems for employers.

Key skills in demand

  • Full stack developers
  • DevOps engineers
  • Maintenance engineers
  • Certified accountants
  • Field market access managers

News and Press Materials

Paula Baptista, Managing Director, Hays Portugal