LUSA 02/05/2026

Lusa - Business News - Portugal: Unemployment rate fell to 6% in 2025, lowest since 2011 - official

Lisbon, Feb. 4, 2026 (Lusa) - The unemployment rate in Portugal fell to 6.0% in 2025, 0.4 percentage points lower than the previous year and the lowest annual figure since 2011, the National Statistics Institute announced on Wednesday.

According to the institute, in 2025, the labour underutilisation rate also stood at a 14-year low of 10.2%, 0.8 percentage points below the previous year.

The youth unemployment rate (those aged between 16 to 24) was 19.5%, 2.1 percentage points lower than the previous year, while the proportion of long-term unemployed was estimated at 36.8%, 0.1 percentage points lower than in 2024.

In 2025, the annual average of the employed population was 5,275,300 people, an increase of 3.2% (163,000) compared to the previous year.

The unemployed population, estimated at 337,100 people, decreased by 4.0% (14,000) compared to 2024.

Last year, the total inactive population was estimated at 5,191,700 people and decreased by 0.3% (13,300) compared to the previous year, corresponding to the second lowest annual average since 2011 after that recorded in 2023 (5,163,000).

The inactive population aged 16 and over, which corresponded to 3,734,400 people, decreased by 0.2% (8,100) compared to 2024.

The inactivity rate was 40.0%, having decreased by 0.7 percentage points compared to 2024 and reaching its lowest level since 2011.

In 2025, the employment rate stood at 57.3% and increased by 0.9 percentage points compared to 2024.

In the year under review, the annual average of labour underutilisation (which aggregates the unemployed population, underemployment of part-time workers, inactive persons seeking employment but not available, and inactive persons available but not seeking employment) covered 586,600 people, 4.2% (25,500) less than in 2024.

The unemployed population accounted for more than half (57.5%) of labour underutilisation, while the weight of underemployment of part-time workers (126,900) decreased to 21.6%.

The national statistics institute data also show that the group of inactive persons available but not seeking employment remained the third largest component of labour underutilisation (16.1%), covering 94,700 people.

Inactive persons seeking employment but not available for work (28,000) accounted for 4.8% of labour underutilisation.

 

 

 

 

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