Portugal unemployment drops 8.7% in May, Madeira hits 23‑year low

Portugal's labour market showed a notable improvement in May 2026. The number of people registered as unemployed at the Institute of Employment and Professional Training (IEFP) fell to 274,766, an 8.7% decline compared with May 2025 and a 3% drop from April. The reduction was observed across all regions, with the North falling 12.3%, the Azores 11.3% and Madeira 9.7% year‑on‑year.

In the autonomous region of Madeira, unemployment reached its lowest level in 23 years, with only 5,360 people registered in May – a 9.7% YoY decline and the smallest figure since August 2003. Young people (under 25) accounted for 670 of those jobs, 12.5% of the total, while long‑term unemployment also fell by 12.9%.

Job vacancies nationwide stood at 17,703 at the end of May, down 2.4% year‑on‑year but up 7.6% from the previous month. Offers received totaled 11,321, a decrease of 14.4% versus May 2025, and placements fell to 7,822, 10.8% lower than a year earlier. The lay‑off (lay‑off) scheme also saw a modest decline, with 4,778 cases processed, 4.5% fewer than the prior month.