The unemployment rate fell to 6.2% in Portugal in January 2025 from 6.4% in December 2024, according to the provisional estimates of Statistics Portugal. The jobless rate has been gradually declining since last November.

The rate is slightly higher than the EU average. According to the latest figures published by Eurostat, the unemployment rate was 6.3% in the eurozone in December and 5.9% in the European Union.

In January 2025, the employed population, estimated at 5.167 million, has reached its highest value since the beginning of the data series in February 1998.

For the same month, the unemployment rate for women was 6.5%, exceeding that for men (6%).

The youth unemployment rate, which measures job-seekers between the ages 16-24, fell to 19.5%, from 20.4% in December 2024 and hit its lowest level since June 2023 (18.7%).

The employment rate slightly rose to 64.6% from 64.5%.

The economy is booming in Portugal

Portugal has recently implemented steps to support its job market, including a new migrant employment support programme last October, made steps to speed up its work visa process as the country's government aims to issue permits within 30 days. Portugal’s decision to streamline its work visa process, aiming to issue permits within 30 days or less, is set to reshape its job market and attract foreign workers to fill critical vacancies. The government has also proposed tax breaks for those below 35 years old .

The economy in Portugal is one of the most promising growth engines of the eurozone, hand in hand with Spain, the world’s fastest-growing major economy last year.

The smaller Iberian country has recorded stable growth over the past year, fuelled by consumer spending and investment. The GDP grew by 2.8% year-on-year in the last three months of 2024.

According to Oxford Economics, the two countries will continue to be clear outperformers within a struggling eurozone in 2025.