PORTUGUESE ECONOMISTS say that unemployment in Portugal is set to remain at around eight per cent because the country’s economic growth is so weak.
With unemployment at historically high levels, many unemployed are likely to become retired without having ever returned to the employment market. This in turn will bring severe social costs in terms of taxes and unemployment benefit and pensions on the remaining working population.
Weak economic growth in Portugal, at around 1.4 to 1.8 per cent, is one of the key factors why unemployment is so high, coupled with the government’s pruning of the overly large civil service and public sector administration system.
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