In the 1^st quarter of 2026

Unemployment rate fell to 4.5%, the lowest in the country

The results of the Labour Force Survey for the 1^st quarter of 2026 indicate an unemployment rate in the Autonomous Region of Madeira (ARM) of 4.5%, which represents a decrease of 2.2 percentage points (pp) compared to the same quarter of the previous year and 0.4 pp compared to the previous quarter. This is a new low for this indicator, considering the series that began in 2011.

The active population amounted to 142.3 thousand persons, reflecting a growth of 4.4% (+6.0 thousand persons) compared to the same quarter of the previous year and 1.3% (+1.8 thousand persons) compared to the previous quarter. The active population thus reaches a new historical maximum.

The employed population stood at 135.9 thousand persons, having increased by 6.8% year-on-year (+8.7 thousand persons) and by 1.7% compared to the previous quarter (+2.3 thousand persons). Of the employed population, 3.8 thousand were in part-time underemployment, 6.9 thousand persons had a secondary occupation, and 19.3 thousand worked from home (16.2% of employed women and 12.2% of employed men). Since the 2^nd quarter of 2025, the employed population has been successively reaching new historical highs, a trend that continued in the 1^st quarter of 2026.

The estimate of the unemployed population for the 1^st quarter of 2026, calculated at 6.4 thousand persons, decreased by 29.7% compared to the same quarter of the previous year and by 7.9% compared to the previous quarter.

Labour underutilisation encompassed 12.2 thousand persons, having decreased by 21.4% (-3.4 thousand persons) compared to the same quarter of the previous year and by 9.1% (-1.3 thousand persons) compared to the previous quarter. The labour underutilisation rate was estimated at 8.5%, representing a decrease of 2.7 pp compared to the same period of the previous year and 0.9 pp compared to the previous quarter.

The inactive population was estimated at 120.5 thousand persons, decreasing by 2.9% compared to the same quarter of the previous year (-3.7 thousand persons) and by 1.8% compared to the previous quarter (-2.2 thousand persons).

The activity rate of the population aged 16 to 89 years in the 1^st quarter of 2026 was estimated at 62.6%, 2.0 pp higher than in the same quarter of the previous year and 0.9 pp higher than in the previous quarter. The activity rate for women was 58.3%, which was 9.1 pp lower than that for men (67.4%).

In Portugal, the unemployment rate in the quarter under review stood at 6.1%, 0.5 pp lower than in the same period of the previous year and 0.3 pp higher than in the previous quarter. The highest unemployment rates were recorded in Grande Lisboa at 7.4%, Peninsula de Setúbal at 6.8%, Algarve at 6.7% and the Norte region at 6.0%. At the opposite end, the ARM registered the lowest rate, at 4.5%, followed by the Centro region at 5.0%, the Autonomous Region of the Azores (ARA) at 5.4%, Alentejo at 5.5% and the Oeste e Vale do Tejo region at 5.6%.

On a quarterly basis, the unemployment rate decreased in Peninsula de Setúbal (-1.2 pp) and in both Alentejo and the ARM (-0.4 pp). With the exception of the Norte region, which maintained its unemployment rate, the remaining regions recorded quarterly increases of 1.6 pp in Grande Lisboa, 1.4 pp in Algarve, 0.5 pp in the Centro region, 0.4 pp in Oeste e Vale do Tejo and 0.3 pp in the ARA.

Year-on-year, the ARM recorded the largest drop in the unemployment rate, with a reduction of 2.2 pp. Year-on-year decreases were also observed in Peninsula de Setúbal (-1.7 pp), Algarve (-1.4 pp), the Norte region (-0.8 pp), the Oeste e Vale do Tejo, Alentejo and ARA regions (all -0.3 pp) and the Centro region (-0.1 pp). The opposite trend was observed only in Grande Lisboa, which recorded an increase of 0.6 pp.

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