A new study published by the Bank of Portugal reveals that foreign labour has made a significant contribution to the Portuguese economy. The study, titled 'A Characterisation of the Stay of Foreign Workers in Portugal', analyzes patterns among foreign citizens registered with the Portuguese Social Security authorities from 2010 to 2025.
According to the findings, over 1.13 million foreign citizens were registered with Social Security in 2025, a substantial increase from just 152,000 in 2010. This reflects a strong acceleration in employment-related migration flows into Portugal.
The study indicates that the average age of foreign workers is 33, with 60% being men. The largest group of foreign workers comes from Brazil, accounting for 38%, followed by South Asian countries such as India, Bangladesh, Nepal, and Pakistan at 19%, and Portuguese-speaking African countries (PALOP) at 14%. Workers from the rest of the EU and the UK also represent around 14% of the total.
Foreign workers are predominantly employed in the service industry, particularly in tourism, hospitality, and restaurants, though agriculture, construction, and industry also employ many. The analysis shows that 86% of foreign workers are employed, with nearly 5% self-employed, indicating a strong connection to the labour market.
However, the study notes that being unemployed increases the likelihood of leaving Portugal. Foreign workers receiving unemployment benefits have a 55% higher risk of dropping out of the Social Security system, suggesting they may have left the country.
The Bank of Portugal recommends that public policies focus on stable employment, higher salaries, and support for family integration to retain foreign workers. Currently, about 22% of foreign workers stay for less than a year, and approximately 39% stay for less than three years.
In conclusion, the study emphasizes that labour immigration will continue to play a central role in Portugal's economy, with its contribution expected to grow as the country works to transform temporary workers into long-term residents.