In the 4^th quarter of 2025

Unemployment rate decreased to 4.9%, with an annual average of 5.4%

The results of the Labour Force Survey for the 4^th quarter of 2025 indicate an estimated unemployment rate in the Autonomous Region of Madeira (ARM) of 4.9%, 0.8 percentage points (pp) lower than in the same quarter of the previous year and 0.4 pp lower than in the previous quarter.

The active population increased to 140.5 thousand persons, showing a growth of 5.9% (+7.9 thousand persons) compared with the same quarter of the previous year and 0.4% (+0.5 thousand persons) compared with the previous quarter.

The employed population stood at 133 600 persons, representing a 6.9% increase year-on-year (+8 600 persons) and a 0.8% increase compared with the previous quarter (+1 100 persons). Of the employed population, 3 400 were in part-time underemployment, 7 000 had a second job, and 17 300 worked from home (14.5% of employed women and 11.4% of employed men). It should be noted that both in the fourth quarter of 2025 and in the annual average for 2025 (130.8 thousand persons), the employed population reached the highest values in the series that began in 2011.

The unemployed population was estimated at 6 900 persons in the 4^th quarter of 2025, decreasing by 9.1% compared with the same quarter of the previous year and by 7.2% compared with the previous quarter.

The unemployment rate encompassed 13.5 thousand persons, representing an increase of 2.2% (+0.3 thousand persons) compared with the same period of the previous year and 4.2% (+0.6 thousand persons) compared with the previous quarter. The unemployment rate was estimated at 9.4%, decreasing by 0.3 pp year-on-year and increasing by 0.3 pp compared with the previous quarter.

The inactive population was estimated at 122 700 persons, decreasing by 2.2% compared with the same quarter of the previous year and increasing by 0.4% compared with the previous quarter.

The activity rate of the population (16 to 89 years) in the 4^th quarter of 2025 was estimated at 61.7%, 2.0 pp higher than in the same quarter of the previous year and 0.1 pp lower than in the previous quarter. The activity rate for women was 57.3%, 9.4 pp lower than that for men (66.7%).

On an annual basis, in 2025, the unemployment rate in the ARM was estimated at 5.4%, 0.2 pp lower than in the previous year. This is the lowest annual unemployment rate recorded since the beginning of the series in 2011.

The unemployment rate in 2025 was 9.7%, 0.7 percentage points lower than in the previous year, also representing the lowest value in the series.

In Portugal, the unemployment rate stood at 5.8%, 0.9 percentage points lower than in the same quarter of the previous year and unchanged compared with the previous quarter. The regions with the highest unemployment rates were Peninsula de Setúbal (8.0%), Norte (6.0%), Alentejo (5.9%) and Grande Lisboa (5.8%). At the opposite end, Centro recorded the lowest rate (4.5%), followed by the Autonomous Region of Madeira (ARM) (4.9%), the Autonomous Region of the Azores (RAA) (5.1%), Oeste e Vale do Tejo (5.2%) and Algarve (5.3%).

On a quarterly basis, the unemployment rate decreased in Centro (-0.6 pp), Grande Lisboa and in the ARM (both -0.4 pp) and Norte (-0.1 pp), increasing in the remaining regions, namely in Peninsula de Setúbal (+1.1 pp), Algarve (+0.8 pp), Alentejo (+0.7 pp), Oeste e Vale do Tejo (+0.6 pp) and in the ARA (+0.3 pp).

On a year-on-year basis, Grande Lisboa recorded the largest decrease (-1.6 pp). Declines were also observed in Centro (-1.3 pp), Oeste e Vale do Tejo (-1.0 pp), Norte (-0.9 pp), ARM (-0.8 pp) and in both Algarve and ARA (-0.3 pp each). In the remaining regions, the trend was reversed, with Peninsula de Setúbal recording the largest increase (+0.3 pp), followed by Alentejo (+0.1 pp).

In 2025, the national unemployment rate stood at 6.0%, decreasing by 0.4 pp compared with the previous year. The highest rate was recorded in Peninsula de Setúbal (8.0%), while the lowest was observed in the Autonomous Region of the Azores (4.9%). Compared with 2024, unemployment rates decreased across all NUTS 2 regions, except in Peninsula de Setúbal, where the rate remained unchanged. Oeste e Vale do Tejo recorded the largest reduction (-1.5 pp).

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