Plans are afoot in Portugal to improve the operation of the labour market, including the skills supply system. There is on-going work to modernise VET so that it is better able to meet demand from the labour market. In order to promote skills development, both the initial education and adult training systems have been identified as in need of further improvements.
By 2025, employment levels will still be below their pre-2008 financial crisis levels. Over the medium term, employment growth will be concentrated in business and other services, with most employment opportunities being for professionals. In this period, Portugal is set to experience an increase in demand for high- and low-skilled workers, whilst demand for medium-skilled workers will decrease. The share of Portugal’s labour force with high- and medium level qualifications is projected to increase, whilst the share of workers with low or no qualifications will decrease.
Portugal’s working-age population (15-64) is projected to shrink in the period to 2025. Labour market participation is also set to decline, although is expected remain above the EU average. Looking further forward, Portugal is expected to have one of the highest old-age dependency ratios in the EU28.