Portugal labor market shows mixed results with falling annual unemployment and rising collective dismissals

Data from the Institute for Employment and Vocational Training (IEFP) shows that registered unemployment in Portugal fell by 9.3% in August compared to the same month in 2025, totaling 273,723 individuals. However, compared to July, unemployment rose by 1.7%, marking the second consecutive monthly increase. Regional trends varied: Madeira saw a 10.5% year-on-year decrease, reaching its lowest levels since 2002, while the Azores recorded a 7% decrease.

In terms of professional sectors, year-on-year unemployment decreased significantly among agricultural workers (-22.3%), industrial and construction workers (-14.8%), and machine operators (-14.2%). Conversely, unemployment rose by 8.3% among executives and managers.

Separately, data from the Directorate-General for Employment and Labor Relations (DGERT) indicates that collective dismissals rose by 13.4% compared to the previous year, with 407 cases reported through August. This represents the highest level since 2020. While the number of collective dismissal processes has increased, the total number of workers actually dismissed through these processes fell by 9.2% compared to the same period last year.