Recorded Reduction in Jobless Rates
Portugal's Unemployment Rate Hits Lowest Levels Since 2022
Good news for Portugal's job market! The unemployment rate has been steadily decreasing, with the latest figures showing a significant drop.
According to the latest data, the unemployment rate in Portugal stood at 6.0% in June 2025, marking a decline from 6.1% in May and a further drop from 6.6% in the previous quarter[1][2]. This is the lowest unemployment rate since March 2022[2].
The decline in unemployment in June marks the fifth consecutive monthly decrease[3]. The total number of job seekers registered in June was less than in May 2025, as well as in June 2024, July 2023, and April 2025[3].
The IEFP report revealed that registered job seekers represent 66.1% of all employment requests[4]. The port reported a 3.8% year-on-year decrease in the number of people registered[4].
The decrease in unemployment can be attributed to several factors. Economic growth recovery has supported job creation[3]. Youth unemployment (ages 16-24) decreased sharply to 18.1%, reflecting better opportunities for young workers[1][3]. Additionally, there has been a reduction in long-term unemployment, with those unemployed for 12 months or more falling by 3.0% year-on-year[1].
Other factors contributing to the decrease include declines mainly affecting men, young people, those with at least a high school diploma, and first-time job seekers[1]. The rate of labor underutilization (including part-time workers seeking full-time work) dropped from 10.4% in May to 10.2% in June[2], reflecting more full employment.
The employment increase was also significant, with the number employed rising by about 8,300 in June 2025 to over 5.2 million, the highest since 1998[2].
Portugal's unemployment has been decreasing steadily since its peak of 17.7% in 2013 due to sustained economic expansion, emigration trends, growth in tourism, and revival of sectors like agriculture[5].
In conclusion, the May 2025 decrease in unemployment is part of a broader positive trend driven by economic growth, gains in youth employment, and reductions in long-term unemployment, complemented by increased labor force participation and employment levels[1][2][3][4].
[1] European Commission. (2025). Employment in Portugal. Retrieved from https://ec.europa.eu/eurostat/web/lfs/data/database
[2] Instituto do Emprego e Formação Profissional. (2025). Labour Market Bulletin - June 2025. Retrieved from https://www.iefp.pt/pt/publicacoes/boletim-do-mercado-de-trabalho-junho-2025
[3] European Commission. (2025). Quarterly Labour Force Survey - Q2 2025. Retrieved from https://ec.europa.eu/eurostat/web/lfs/data/database
[4] Instituto do Emprego e Formação Profissional. (2025). Labour Market Bulletin - May 2025. Retrieved from https://www.iefp.pt/pt/publicacoes/boletim-do-mercado-de-trabalho-maio-2025
[5] European Commission. (2023). Portugal's Unemployment on a Downward Trend. Retrieved from https://ec.europa.eu/info/publications/portugal-unemployment-downward-trend_en
Portugal's unemployment rate, which stood at 6.0% in June 2025, is a reflection of the ongoing decline in the country's jobless numbers, marking the lowest rate since March 2022. This positive trend in Portugal's job market is primarily driven by growth in the finance and business sectors, as economic recovery supports job creation and improved opportunities for young workers.
