Economics in a picture
Foreigners have been sustaining the increase in the labour force over the most recent period
Foreigners accounted for 3.5% of the total labour force in Portugal in the third quarter of 2019. Despite the low weight, the foreign labour force has increased significantly over the most recent period in parallel with the migration flows. Due to their characteristics – typically younger and more educated - foreigners have higher participation rates than Portuguese.
The ageing of the Portuguese population has been contributing negatively to the variation in the participation rate since 2015. By contrast, the foreign population has had a positive effect in the rejuvenation of the labour force as well as in the increase of the participation rate in the labour market. These dynamics have sustained the increase both in the participation rate and in the labour force in Portugal since mid-2018.
For further details see Box 3: “The contribution of foreign population to labour force developments in Portugal” published in the Economic Bulletin of Banco de Portugal, October 2019.
Prepared by Ana Catarina Pimenta and Vanda Geraldes da Cunha. The analyses, opinions and findings expressed above represent the views of the authors and not necessarily those of Banco de Portugal or the Eurosystem.
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