Selected Issues Papers

Labor Market and Digitalization in Portugal

Author/Editor:

Ippei Shibata

Publication Date:

July 11, 2023

Electronic Access:

Free Download. Use the free Adobe Acrobat Reader to view this PDF file

Summary:

This paper analyzes Portugal's labor market and digitalization trends during COVID-19. Portugal had a milder impact on its labor market than previous recessions, with smaller employment declines and less unemployment. However, labor force participation sharply dropped, especially among low-skilled and young workers. Contact-intensive and non-digital jobs and young and low-skilled workers were disproportionately affected. Conversely, digital employment in Portugal grew while non-digital employment decreased. Regression analysis for Europe and the US suggests a temporary rise in digital employment during the pandemic. Policy emphasis on digitalization investments and skills development is crucial for a resilient labor market in Portugal, considering future shocks.

Series:

Selected Issues Paper No. 2023/047

Subject:

COVID-19 Digitalization Employment Health International organization Labor Labor markets Monetary policy Technology

Frequency:

Regular