The challenge of the lack of labor in the Algarve | By João Arroja Neves

The challenge of the lack of labor in the Algarve | By João Arroja Neves

The coming years will bring new challenges to the areas of employment and professional training. A brutal increase in the foreign population, unemployment rate at historic lows, employed population breaking records and high youth unemployment rate are the main factors for the regional strategy that must be put together.

The unemployment rate is at minimum levels, 5.6% in 2025 (INE data), the lowest value in this INE series started in 2011. And the employed population is at maximum levels, with 197,800 people employed in 2025 (the highest value in the same INE series).

The task does not seem easy for companies and other employers who need workers, especially qualified workers.

As there are no magical solutions in these matters, it is important to look for people who, for various reasons, have been away from the job market. At this point we need everyone. The art will be to bring them to the job market. If possible, qualified.

Foreigners. The foreign population residing in the Algarve amounted to 167,321 people at the end of 2024 (AIMA data). At the end of March/26, according to the IEFP, 6,573 foreigners were unemployed in the Algarve region, out of a total of 17,070 people (a weight of 38.5% of the total).

With little labor available (and even less qualified) it would be important to direct these residents to some professions that are in high demand and have good salaries, which nationals are not looking for. With the appropriate professional qualifications, we could inject plumbers, electricians, refrigeration and air conditioning technicians or multipurpose maintenance technicians into the job market. Bureaucracy in recognizing educational qualifications from countries of origin may be an obstacle.

Young people. We have many unemployed young people (in 2024, in the Algarve, 7.8% of young people aged between 25 and 34 were unemployed. On the mainland this figure was 5.7%. INE data). Still in the Algarve, young people who are “neither-nem” (neither work nor study) assume high values. The rate of young people aged between 16 and 29 years old, not employed, not in education or training was 11.5% in 2025 (8.3% on the continent. INE data).

These young people have to come to the “system”. Whether to work or for professional training and subsequent referral to work. Eventually through integrated work between public employment services and the CLAS (Local Social Action Council) of each municipality, with a view to involving youth, sports and similar associations in relation to young people.

RSI beneficiaries. There were 6,046 beneficiaries (2,836 families) with RSI processing in the Algarve region at the end of March/26 (ISS data). This public must be the object of integrated intervention, so that everyone who has the conditions for employment can make their contribution to the world of work, possibly after some professional qualification (many will already have one). Once again, integrated projects between public employment services, CLAS and RSI technical teams could make a difference.

Inclusion of people with disabilities. Inclusion is not just a legal obligation, it is also an opportunity to promote diversity and maximize the capabilities of all professionals. Everyone is needed in this fight to occupy the available job offers, while simultaneously promoting the dignity of those who fight for full inclusion. It is worth noting that the inclusion of people with disabilities in the labor market has evolved positively, driven by legislation, such as the Quota Law (employment quota system for people with disabilities (degree of disability ≥60%) in the private and public sectors. It applies to companies with 75 or more employees, with quotas of 1% (medium-sized companies: 75-249 employees) or 2% (large companies: 250+ employees) and various public supports (support for search, training and adaptation of jobs for people with disabilities, as well as financial support).

We thus have a problem of lack of labor that could put the economic development of the region at risk, especially in the tourism and agriculture sectors.

With those who are here, a lot can be done. All that is needed is political will, some imagination and coordination of resources. From everyone.

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