Underused Immigrants in the Labor Market
In a groundbreaking study titled "Myths and Realities About Migration and the Labour Market," Randstad Research has found that foreign workers in Portugal generally have higher employment rates and qualifications compared to the native population. Contrary to common myths, migrants contribute positively to the labour market and Social Security systems, rather than creating burdens.
Key findings from the study reveal that the foreign population in Portugal tends to have a higher employment rate than natives, with 31.6% of foreigners holding higher education and 43.6% boasting secondary and post-secondary education, above the European averages. Temporary and part-time employment is also more prevalent among foreigners, accounting for approximately one in three foreign workers.
The study also highlights that foreigners significantly contribute to the sustainability of Social Security systems, with a balance between contributions and benefits received reaching a maximum of 2.958 billion euros last year. Foreigners are more represented in sectors with a recognised talent shortage in Portugal, such as agriculture, hospitality, administrative activities, support services, and construction.
The immigrant population in Portugal is also younger, with more than half between 20 and 44 years old. However, the study acknowledges that there are barriers for foreigners in obtaining qualification recognition, meeting language requirements, or acquiring Portuguese nationality. These obstacles may explain why foreigners are disproportionately concentrated in less-skilled jobs, regardless of their qualification level.
Despite having an unemployment rate higher than that of the total population, the proportion of long-term unemployed among immigrants is 16.7 percentage points lower, indicating a greater capacity for faster integration into the labour market. Lisbon is home to almost half of the unemployed foreigners in Portugal, followed by the North and the Algarve.
The study also emphasises that Portugal, which has been a destination for several waves of migration for decades, has seen a significant increase in the number of foreigners since 2017, almost tripling over the last decade. Despite attracting talent, the qualifications of foreign workers are not being fully utilised, with a higher level of over-qualification among foreign workers (42.8%).
In conclusion, the Randstad Research study challenges common misconceptions about immigration's impact on Portugal's labour market and Social Security systems. Instead, migration is shown to be an essential driver of economic growth and Social Security system sustainability in Portugal. For more precise insights, accessing the original report or Randstad's official publications is recommended.
[1] For broader recent analyses and expert consensus on immigration’s positive labour market and fiscal impacts in Portugal and other European countries, refer to [insert relevant sources here].
- The Algarve region, like other parts of Portugal, has witnessed a significant surge in foreign residents in recent years, contributing to a more diverse and skilled workforce.
- In spite of the challenges in qualification recognition and language barriers faced by many immigrants, the study reveals that politics should work towards utilizing the general-news worthy skills of foreign workers fully, as they play a crucial role in sustaining the Portuguese labor market and sectors with recognized talent shortages.
