Portugal’s unemployment rate has edged down only slowly since 2019, prompting debate over whether it is approaching a near‑floor. The rate’s stabilisation reflects a mix of cyclical recovery and structural constraints — tight labour markets in some sectors, demographic shifts, labour‑market mismatches and cost‑of‑living pressures that can limit further job creation. Further falls are possible but will likely depend on stronger demand, targeted upskilling and reforms that reduce structural unemployment rather than relying on cyclical factors alone.