Portugal's unemployment rate fell to 5.3% in the second quarter of 2026, the lowest level since Statistics Portugal (INE) began the current statistical series in 2011.

The unemployment rate declined by 0.8 percentage points compared with the previous quarter and by 0.6 percentage points compared with the same period in 2025.

Between April and June, the number of people in employment reached around 5.4 million, an increase of 99,000 compared with the previous quarter, equivalent to a rise of 1.9%. Compared with the same period last year, employment increased by around 151,000 people, representing annual growth of 2.9%.

The number of unemployed people stood at 300,800 in the second quarter. This represents a decrease of 45,500 compared with the first three months of the year and 28,700 fewer than in the second quarter of 2025.

The Península de Setúbal (7.4%), Greater Lisbon (5.7%) and the North (5.7%) recorded unemployment rates above the national average of 5.3%. All other regions remained below the national average, including the Azores (5.0%), Oeste and Tagus Valley (4.6%), the Algarve (4.2%), the Centre (4.0%), the Alentejo (4.0%) and Madeira (3.5%).

The inactive population aged 16 and over fell by 0.7% compared with the previous quarter, to 3.712 million people. Compared with the same period in 2025, the inactive population decreased by 1.1%, corresponding to 40,900 fewer people.

Employment growth occurred alongside an increase in the active population, while still contributing to a reduction in both the number of unemployed people and the unemployment rate.

Overall, the labour market recorded a positive performance in the second quarter of 2026, with employment increasing and the unemployment rate falling to 5.3%, its lowest level since 2011.