Portugal

Labour Market Reforms in Portugal 2011-15

A Preliminary Assessment

Published on February 21, 2017

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This report, commissioned by the XIX Government of Portugal, provides an evaluation of the comprehensive labour market reforms undertaken in Portugal over the period 2011-2015. It describes reforms in the areas of employment protection legislation, unemployment benefits, activation, collective bargaining, minimum wages and working time. The report reviews the reforms in detail and assesses the available evidence on the impact they have had on the labour market. The report concludes that the Portuguese labour market reforms were a move in the right direction. However, despite the progress made, many challenges remain and some of the reforms may not have gone far enough. Unemployment remains high and this situation has fuelled an increase in both poverty and long-term unemployment The labour market remains highly segmented and, in the context of very low inflation, the presence of downward nominal wage rigidity is likely to remain a barrier to the competitiveness of the Portuguese economy – unless productivity growth is strengthened.

TABLE OF CONTENTS

Foreword
Executive summary
Assessment and recommendations
Labour market reforms in Portugal 2011-2015
Recent labour market developments and outstanding challenges in Portugal
Policy priorities for achieving better labour market outcomes in Portugal
References
Annexes5 chapters available
Detailed overview of labour market reforms in Portugal over the period 2011-2015
Timeline of reforms
The impact of severance pay reforms in Portugal on on-the-job search and worker flows
The impact of reductions in unemployment benefit levels on flows from unemployment to employment
The impact of active labour market programmes on employment outcomes
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