Portugal sees 30% drop in employers on lay‑off scheme in 2025

In 2025, 943 Portuguese employers were in a lay‑off situation, a 30.2% decrease (408 fewer) compared with the 1,351 recorded in 2024, reversing a multi‑year upward trend. The number of lay‑off beneficiaries fell by 17.3% – about 4,500 fewer people – with women constituting 54.2% of the remaining recipients.

Temporary work suspensions covered roughly 11,300 beneficiaries, down 12% year‑on‑year, while reduced‑hour arrangements affected about 12,900 workers, a 14.6% decline. The year also saw 552 collective dismissals affecting around 6,500 employees, an increase of 10.3% compared with the previous year, and a rise of 11.1% in the number of collective dismissals announced.

Overall, contracts registered with Social Security grew 3.3% to 7.213 million, of which 26.8% (1.936 million) were new contracts.