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Portugal’s Scarce Job Openings and What They Mean for Newcomers

Economy
Empty Office
By The Portugal Post, The Portugal Post
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For anyone scouring Portugal’s job boards this summer, the latest figures from Eurostat offer a quick reality check: vacancies here remain scarce even as many neighbours advertise more open positions. The European statistics office has just released its first-quarter snapshot, showing that only 1.3 percent of all posts in Portugal were unfilled—far below the 2.2 percent average across the European Union and the 2.4 percent recorded in the euro area.

A Continental Pulse—and Where Portugal Sits

Across the EU the share of empty jobs edged down for a third consecutive quarter, hinting that firms are gradually filling roles left open after the pandemic hiring boom. Northern Europe continues to lead the pack, with the Netherlands posting the bloc’s highest vacancy rate at 4.2 percent, closely followed by Belgium and Austria. At the other end of the spectrum sit Romania, Poland, Bulgaria and Spain, all below one percent. Portugal, with its 1.3 percent reading, lands just above that group, recording the sixth-lowest rate in the Union. Although the domestic figure nudged up by 0.1 percentage points compared with the same period last year, the gap between Lisbon and the EU average remains wide.

What a Low Vacancy Rate Really Means

A modest vacancy rate can be interpreted in two very different ways. On one hand, it signals that companies have largely managed to fill openings, which tends to keep unemployment in check. On the other, it suggests fewer fresh opportunities for newcomers hoping to break into the market. Foreign residents who do not yet speak Portuguese or who target highly specialised roles may feel the pinch first, as employers can often choose from a deep local talent pool.

Wage Pressure Inches Up—But Gently

Eurostat also released data on labour costs, the broadest measure of how much employers spend per employee. Wages and non-salary expenses in Portugal rose 4.0 percent year-on-year, slightly below the 4.1 percent increase recorded for the EU as a whole. While that marks a faster pace than German or French employers faced, it pales in comparison with the double-digit jumps seen in Romania, Croatia or Bulgaria. For expatriates negotiating contracts, the numbers confirm anecdotal reports: salaries are creeping higher, yet Portugal remains a relatively cost-effective base for employers.

A Market Still Finding Its Post-Pandemic Balance

Portugal’s labour market emerged from the pandemic with record-low unemployment and a burst of hiring in tourism, technology and construction. By late 2024, however, the flow of new listings slowed as global interest-rate hikes cooled investment. Recruiters say the current 1.3 percent vacancy rate is typical of a market that has tightened quickly but still lags Northern Europe in overall job creation.

Implications for Foreign Professionals and Employers

Prospective residents weighing a move should prepare for a more competitive search, especially in entry-level or non-tech fields. Knowledge of Portuguese remains a decisive advantage outside multinational firms and the start-up scene centred in Lisbon and Porto. Employers, meanwhile, can still benefit from comparatively moderate wage inflation, although the gradual rise in labour costs signals that the bargain of recent years is narrowing. Companies hiring remotely from Portugal may need to adjust pay scales to stay attractive to candidates fielding offers from faster-growing markets in Central and Eastern Europe.

Looking Ahead

Economists expect Portugal’s vacancy rate to hover near current levels for the rest of 2025, with tourism-driven roles and information technology providing the bulk of new openings. Much will depend on whether euro-area growth regains momentum and on the impact of ongoing tax incentives designed to lure foreign talent.