Labour Market Reforms in Portugal 2011-15
A Preliminary Assessment
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.
Published on February 21, 2017