In the 2^nd quarter of 2026
Unemployment rate fell to 3.5%, remaining the lowest in the Country

The results of the Labour Force Survey for the 2^nd quarter of 2026 indicate an unemployment rate in the Autonomous Region of Madeira (ARM) estimated at 3.5%, a value 1.3 percentage points (pp) lower than in the year-on-year quarter and 1.0 pp lower than in the previous quarter. The unemployment rate for men was higher, standing at 3.8%, while that for women stood at 3.2%.

The labour force totalled 142.8 thousand persons, increasing by 4.8% (+6.5 thousand persons) year-on-year and by 0.4% (+0.5 thousand persons) quarter-on-quarter. The labour force thus reached a historical maximum in the current series.

The employed population stood at 137.8 thousand persons, having increased by 6.2% year-on-year (+8.0 thousand persons) and by 1.4% quarter-on-quarter (+1.9 thousand). Of the employed population, 3.0 thousand persons were in a situation of part-time underemployment, 7.1 thousand persons held a secondary job, and 20.0 thousand worked from home (16.5% of employed women and 12.6% of employed men). Since the 2^nd quarter of 2025, the employed population has been recording successive historical maximums, reaching a new maximum once again in the 2^nd quarter of 2026.

With 5.0 thousand persons, the unemployed population reached the lowest value in the series that began in 2011, representing a decrease of 23.3% year-on-year and of 21.4% compared with the 1^st quarter of 2026.

Labour underutilisation affected 10.1 thousand persons, having decreased by 21.0% (-2.7 thousand persons) year-on-year and by 17.2% (-2.1 thousand) compared with the previous quarter. The labour underutilisation rate was estimated at 7.0%, representing a decrease of 2.2 p.p. year-on-year and of 1.5 pp compared with the preceding quarter.

The inactive population, estimated at 120.8 thousand persons, decreased by 3.4% year-on-year (-4.2 thousand) and increased by 0.2% compared with the 1^st quarter of 2026 (+0.3 thousand).

The activity rate of persons of working age (16 to 89 years), in the 2^nd quarter of 2026, was estimated at 62.6%, a value 2.2 pp higher than in the year-on-year quarter and remained unchanged compared with the preceding quarter. The activity rate for women was 59.0%, 7.7 pp lower than for men (66.7%).

In the quarter under review, the unemployment rate in Portugal stood at 5.3%, a value 0.6 pp lower year-on-year and 0.8 pp lower than in the preceding quarter. The highest unemployment rates were recorded in the Peninsula de Setúbal region, at 7.4%, followed by Norte and Grande Lisboa (both at 5.7%). At the opposite end, the ARM had the lowest rate, at 3.5%, followed by Centro and Alentejo, both at 4.0%, Algarve at 4.2%, Oeste e Vale do Tejo at 4.6%, and the Autonomous Region of the Azores (ARA) at 5.0%.

The unemployment rate decreased, quarter-on-quarter, in Algarve (-2.5 pp), Grande Lisboa (-1.7 pp), Alentejo (-1.5 pp), Centro, Oeste e Vale do Tejo, and the ARM (all at -1.0 pp), RAA (-0.4 pp), and Norte (-0.3 pp). Peninsula de Setúbal was the only region to record an increase in the unemployment rate, of 0.6 pp.

Year-on-year, the ARM recorded the largest reduction in the unemployment rate among the NUTS 2 regions, with a decrease of 1.3 pp. Reductions were also observed in Peninsula de Setúbal (-1.2 pp), Centro (-1.1 pp), Alentejo (-0.9 pp), Grande Lisboa (-0.8 pp), Norte (-0.4 pp), Algarve (-0.3 pp), and Oeste e Vale do Tejo (-0.2 pp). By contrast, the ARA was the only region to record a year-on-year increase in the unemployment rate (+1.1 pp).

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