Latest news and stories about labour costs in Portugal for expats and residents.
The Portuguese economy faced challenges at the end of 2025 as declining productivity and rising wages drove up unit labour costs, while increased housing investment led to a slight reduction in household savings.
The article discusses the disparity between salary increases and productivity growth in Portugal over the last decade. While average salaries have risen by 44%, this has not led to a real increase in purchasing power, as productivity has not kept pace. The Minister of Labour has raised concerns about the need for real productivity gains to sustain salary growth. Current government policies have pushed minimum wages to high levels without considering economic growth or productivity, threatening smaller businesses and leading to structural imbalances in the economy, such as inflation and reduced competitiveness. The article emphasizes the need for salary increases to be aligned with productivity and economic growth to ensure a sustainable future for the country's economy.
Construction costs for new housing rose 4.0% in 2025 versus 2024, accelerating from a 3.4% increase the prior year, according to the National Institute of Statistics (INE). The rise was driven chiefly by a 7.7% increase in labour costs — the largest component — although that labour increase actually eased compared with 2024. The data point suggests mounting pressure on housing affordability and margins for developers, with labour market dynamics continuing to be the main cost-side risk for the sector.
On average, companies in the European Union (EU) spent 34.9 euros per hour worked last year. According to data released this Tuesday by Eurostat, among the various member states, Bulgaria recorded the lowest labour costs in the community bloc, while Luxembourg stood out for the opposite reason. With a...
Average hourly labour costs rose to 34.9 euros in the EU and 38.2 euros in the eurozone in 2025, ranging from 12 euros in Bulgaria to 56.8 euros in Luxembourg. According to data released this Tuesday, the 31st, by the European Union's statistical office, the indicator increased by 4.1% compared to the 33.5 euro average across the 27 member states and by 3.8% compared to the 36.8 euros recorded in the eurozone in 2024. Among member states, the highest average hourly labour costs in 2025 were recorded in Luxembourg (56.8 euros), Denmark (51.7 euros), and the Netherlands (47.9 euros), while the lowest were in Bulgaria (12.0 euros), Romania (13.6 euros), and Hungary (15.2 euros). Portugal, with an average of 19.4 euros (an increase from 18.2 euros in 2024), ranks third among the 11 member states with the lowest average hourly labour costs, following Slovakia and the Czech Republic (19.8 euros each). Hourly labour costs rose by 3.3% in the eurozone and 3.7% in the EU in the third quarter.
The index related to labour costs saw the highest increase, rising by 7.7% over the year. However, this still represents a slowdown compared to 2024.
Costs of new housing construction in Portugal rose by 4.5% in November year-on-year, according to data released on Friday by the National Institute of Statistics (INE). The change represents an acceleration of 0.1 percentage points compared with the previous month. Labour costs were the main driver of this increase, with ...
In the third quarter, labour costs increased by 3.3% in the eurozone and by 3.7% in the European Union, indicating a significant rise in employment expenses across the region.
In Portugal, the indicator increased by 4.7%.
