Unemployment in Portugal decreased to 5.3 percent in the second quarter

The unemployment rate in Portugal decreased to 5.3 percent in the second quarter of 2026. However, according to the most recent monthly estimate, the rate remained at the same level as June at 5.7 percent in July; The two data reflect different measurement periods.

The unemployment rate in Portugal was recorded as 5.3 percent in the second quarter of 2026. According to INE data, this rate is 0.8 points lower than in the first quarter of the year and 0.6 points lower than in the same period of 2025.

The number of people employed in the April-June period reached approximately 5.4 million. This means an increase of 99 thousand people compared to the previous quarter and an increase of approximately 151 thousand people compared to the same period last year.

However, monthly forecasts show that the labor market follows a more balanced course in the summer months. According to the data published by INE on August 31, the unemployment rate was 5.7 percent in July; This rate is the same as June and 0.1 points below July 2025.

While the unemployed population decreased by approximately 2,700 people in July compared to the previous month, the number of employed people decreased by approximately 7,100 people. For this reason, the strong outlook in the second quarter and the monthly chart in July should not be directly interpreted as the same.

When evaluating the developments in the labor market, it is necessary to look not only at the unemployment rate, but also at the nature of employment, working hours and the labor force spare capacity indicator, which includes people who are looking for a job but are not considered unemployed for various reasons. This rate was announced as 9.5 percent in July.

PTNewsHub review

Although the decline in unemployment is a positive development, the necessary economic steps must continue to support employment. Permanent and secure job opportunities are decisive in turning the decline in the unemployment rate into real relief for households. The stagnation in monthly data also shows that this support should be stable, not just temporary.

Practical knowledge

Job seekers can regularly follow IEFP's job postings, vocational training and reskilling programs. Since unemployment benefit, registration and support conditions vary depending on individual work history, up-to-date information should be obtained from IEFP or Segurança Social before applying.

Sources reviewed

INE – July 2026 unemployment and labor idle capacity data

Government of Portugal / INE – unemployment data for the second quarter of 2026

Jornal Económico – unemployment to remain at 5.7 percent in July