Labor shortage affects 8 out of 10 business owners in Portugal, says newspaper.

Portugal is currently experiencing record levels of employment, but this scenario presents challenges for economic growth. According to data from the Portuguese Business Association (AEP), "eight out of ten business owners consider the difficulty in hiring labor a factor that significantly or very significantly impacts their activity."

The country is experiencing near-full employment. In November, the employed population reached 5,3 million people. The unemployment rate stood at 5,7%, the lowest figure in the last 23 years.

The country suffers from the same syndrome. faced by ItalyThe combination of low generational renewal and policies restricting the entry of foreigners exacerbates the vacuum in the labor market. For experts, the stance anti-immigration policy This could stifle growth in both European countries.

According to Luís Miguel Ribeiro, president of AEP, the numbers reflect an improvement in the economy, but impose limits. "Companies are seeing their growth limited by the lack of manpower, which is undoubtedly one of their main challenges," says the executive. to the Economic Journal.

Portugal's population growth has depended exclusively on positive net migration. Natural population growth has been negative for years. "There is a shortage of people to work; we are practically at full employment," emphasizes Gonçalo Regalado, president of the Development Bank.

Armindo Monteiro, president of the Portuguese Business Confederation (CIP), warns that most recent immigrants have low qualifications. According to him, these profiles "will not be able to fill the shortage of workers in the most demanding sectors."

Monteiro points out that the new Action Plan for Migration could affect the availability of professionals. Without increased immigration, the national economy will have difficulty expanding its workforce in vital sectors.

The tax issue is also cited as critical to attracting talent. Portugal has one of the highest labor tax rates among OECD countries. The high income tax (IRS)Personal Income TaxThis reduces net pay and drives away specialists.

"At the moment, multinational branches in Portugal are not attractive because, for the same gross salary, (the workers) "They will receive less net income," explains Armindo Monteiro. The scenario of labor rigidity puts the execution of European funds and the country's competitiveness at risk.