Employment wavers in the third quarter and unemployment rate rises

Portugal's job creation shows a decline in momentum, with a 1.1% increase in employment year-on-year for Q3 2026, the weakest growth in two and a half years. The unemployment rate has also risen, indicating economic activity weakening. Employment decreased by 0.2% from Q2 to Q3 2026, marking the second consecutive quarterly contraction this year. Since the end of the pandemic, there have been only three quarterly declines in employment, with the latest drop being the fourth in nearly five years.