European Central: Portugal Wants To Attract More Foreign Workers
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While immigration is a hotly contested topic in Europe, Portugal strives to make it easier for people to migrate and work in the country. The nation saw the most people ever employed last year yet needs more. Foreigners can apply for a 120-day visa and request for it to be extended a further 60 days. While The tourism industry took a hit during the pandemic, it has made a comeback and desperately needs workers. It is estimated that the industry needs at least 50,000 additional workers. Portugal’s labor shortage is partially exacerbated by the country’s demographic woes as the population shrinks from Portuguese workers emigrating to higher-paying nations.
Besides a work visa allowing workers to relocate to Portugal temporarily, there are other solutions that the national government has been working on. The new visa already comes after Portugal already had changed the rules to entice immigrants from Portuguese-speaking countries (known as the CPLP, the Community of Portuguese Speaking Countries) to move there. The nations part of the CPLP are Angola, Brazil, Cabo Verde, Guinea Bissau, Equatorial Guinea, Mozambique, Sao Tome and Principe, and Timor-Leste. Applicants from these nations could receive a visa for a year which has the potential to be extended by two years. Applicants must receive a decision within 60 days of applying and the application must be submitted within 90 days of entering Portugal.
While Portugal may need workers, make sure you do the math before packing your bags to move. The nation continues to struggle to reach a balance between the cost of living and wages. Portugal has the lowest wages in Western Europe. In 2018, the median hourly wage was 5.37 euros in Portugal, significantly less than in neighboring Spain where it was 10.05 euros the same year. Wages have been stagnating for over a decade so do not count on a raise any time soon either. 14 years ago the median hourly wage for Portuguese workers was 4.71 euros, meaning wages only increased 14% in 14 years. The EU average was an increase of 23 percent in the median hourly wage. As Portugal is a member state of the EU, Portuguese citizens also have the right to work in any other member state they want. As the EU median hourly wage was 13.18 in 2018, Portuguese citizens certainly have other options if they want to earn more than they currently do in Portugal. From the data, it is clear That Portuguese citizens have taken advantage of the right to work in other countries as Portugal has one of the highest rates of emigration in the world. In 2014, 14 percent of Portuguese citizens were living abroad, the third highest of any nation behind only Ireland and New Zealand. Portugal's national government attempted to attract back emigrants through tax incentives for those who lived abroad for at least three years. These Portuguese citizens would pay 50 percent of the usual income tax rate for five years and could also qualify for money to help with relocation costs if they are coming back to fill a job vacancy. In 2020, Portugal was eighth in the EU for the highest portion of nationals as a percentage of immigrants that year. Time will tell however if these nationals simply wanted to return to Portugal during the pandemic or if they returned home in order to take advantage of tax schemes and reestablish themselves professionally in the country.
The low wages can also explain why Portugal has been more successful in attracting immigrants from outside the EU compared to within. 6.4 percent of Portugal’s population as of January 1st, 2021 were non-nationals. 76.6 percent were from non-EU countries, numbering 503,500 total immigrants. Simultaneously Only 158,600 EU citizens live in Portugal. Brazil is the top source of Portugal’s immigrants with a total of 184,000 as of 2021, which should be unsurprising for those familiar with Brazil’s history as a former colony of Portugal and the largest Portuguese-speaking country in the world.
Portugal hopes to address the housing crisis through the nation's Recovery and Resilience Plan. The plan in particular will focus on making housing available for poorer families in immediate need of housing, with an expected 2,000 units for this purpose. The plan also hopes to have 15,000 beds available for students by 2026. Portugal is not the only European nation facing the challenge of too little housing for citizens yet like the others must work to resolve the challenge quickly. Despite a population decline, the additional need for housing can be explained by smaller households. In the 2021 census, it was reported that there were 4,156,017 households in Portugal which was an increase of 2.7 percent from the last census in 2011. During the same years, the average household size decreased from 2.6 to 2.5.
While it may be difficult to find a job that pays well in Portugal, there is another solution. For people wanting to move to Portugal, they could find a job that they can do remotely and allow them to live in the sunny nation. Portugal has already become popular with digital nomads. Despite having a high living standard, Portugal has lower living costs for those with an income from a richer nation. This makes it an ideal location as the money can go further for digital nomads.
