The construction sector in the Algarve is the most affected by the economic crisis in Portugal.
The region is recording falls of more than double the national average in terms of construction of new buildings.
According to data released by the Association of Construction and Public Works Companies (AECOPS), in the first seven months of 2010, the Algarve registered a 25.3 per cent fall in the number of licences that were granted for construction of new buildings for housing compared with the same period last year.
Nationally, the decline was 11 per cent.
The drop in the construction sector led to an increase in the unemployment rate in the region.
In August, the region registered more than 31.8 per cent of unemployed in the sector than in the same period last year, while the country’s average was 12.7 per cent.