Housing crisis in Portugal impacts recruitment and worker mobility

The housing crisis in Portugal is increasingly affecting the ability of small and medium-sized enterprises (SMEs) to recruit and retain talent, particularly in major urban centers like Lisbon and Porto. High rental costs are forcing workers to move to peripheral areas, creating a secondary challenge regarding mobility and commuting costs.

Business leaders and economists note that the high cost of living near workplaces makes certain job opportunities unviable for candidates. While moving to the outskirts can reduce monthly rent expenses by over €900, these savings are often offset by increased spending on fuel, tolls, and parking, as well as the significant time lost to daily commutes.

Testimonies from workers highlight a difficult trade-off between financial savings and quality of life, as many must endure long travel times and heavy traffic to maintain employment in the cities.