Underutilized Immigrant Workforce in the Labor Market
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Portugal, a country that has been a destination for several waves of migration for decades, has seen a significant increase in the number of foreigners since the mid-2010s, particularly since 2017. According to the Randstad Research study "Myths and Realities About Migration and the Labour Market" in Portugal, foreign workers' employment is distributed by sector and qualification level in an interesting manner.
Immigrant Workforce: Skilled but Undervalued
Contrary to common perceptions, immigrant workers in Portugal tend to hold jobs that are less valued, despite often being more qualified than the local workforce. The study highlights that foreigners experience a lower long-term unemployment rate (20.2%) compared to the overall population (36.9%), indicating relatively better employment stability.
Sectoral Distribution of Foreign Workers
Although detailed numeric breakdowns by specific sectors and qualification levels are not fully detailed in the search results, the study emphasizes that immigrants in Portugal contribute significantly to the labor market, working mostly in sectors where their skills may be undervalued or underutilized.
In sectors such as industry, commerce and vehicle repair, transportation and storage, and consulting and scientific activities, the proportion of foreigners is consistently lower than that of Portuguese workers. On the other hand, foreigners are more represented in certain sectors with a recognized talent shortage in Portugal, notably agriculture, hospitality, administrative activities and support services, and construction.
Qualification Level and Employment
Regarding qualifications, a significant portion of the foreign-born population residing in Portugal has high qualifications. More than half fall within the age range of 20 to 44 years old, with more than one-third (31.6%) having higher education and 43.6% secondary and post-secondary education, above the European averages of 27.4% and 32%, respectively.
However, the study highlights that immigrants are disproportionately concentrated in less-skilled jobs, with more than half in unskilled jobs and personal services, protection, and sales. Part-time employment is also more prevalent among immigrant workers (11.2%) than among the total population in Portugal (8.1%).
Integration Challenges
Immigrants have a greater capacity for faster integration into the labour market, but face persistent challenges in their full and equitable integration. The authors of the study believe these challenges can be explained by barriers to qualification recognition, language requirements, or the need for nationality.
Contribution to Social Security
Despite attracting talent, the qualifications of foreign workers are not being fully utilized, with a higher level of over-qualification among foreign workers compared to the total population. However, immigrants contribute significantly to the sustainability of Social Security systems in Portugal, with a balance between contributions and benefits received of 2.958 billion euros last year.
Unemployment and Location
Lisbon was home to almost half of the unemployed foreigners in Portugal, followed by the North and the Algarve. The unemployment rate among immigrants is more seasonal than that of the total population.
In conclusion, the Randstad Research study challenges common assumptions by showing that immigrants in Portugal are often relatively skilled but employed in sectors or roles that do not always reflect their qualification levels. The full report, which might provide more detailed demographic and sectoral data, is not directly accessible here.
Immigrants in Portugal, particularly in the Algarve region, have demonstrated a significant contribution to the finance sector, given their representation in sectors with a recognized talent shortage, such as administrative activities and support services. However, despite the skills and qualifications that many foreigners possess, they are often undervalued financially, as they are disproportionately concentrated in less-skilled jobs, contributing to the sustainability of Social Security systems in Portugal.
