Between the country's gridlock and the courage to change

Tuesday, 17 March 2026RSS

Labour reform highlights an old contradiction: everyone acknowledges the country's problems—anemic growth, low wages, and low productivity—but when it comes time to solve them, politicians back down. The Portuguese labour market remains one of the most rigid in the OECD, with complex rules that discourage hiring and hinder growth. The proposed government reform is a step in the right direction but falls short of addressing structural issues. A true transformation should adopt a flexicurity model, balancing flexibility for companies with strong worker protection through active employment policies. Furthermore, the debate ignores the vast disparity between public and private sector labour laws, which fuels inequality and inefficiency. Ultimately, the obstacle to reform is political, not technical, as parties prioritize electoral calculations over the national interest.

View full article on Diário de Notícias

RSS source