More Portuguese continue to drop from workforce as lockdowns hit the economy
More people dropped out of Portugal’s workforce in the three months through June amid the government’s confinement measures aimed at controlling the coronavirus outbreak.
img decoding=”async” src=”http://algarvedailynews.com/images/news2/94workforce-drop.jpg” alt=”94workforce drop” width=”160″ height=”107″ style=”margin-right: 10px; margin-bottom: 5px; float: left;” />More people dropped out of Portugal’s workforce in the three months through June amid the government’s confinement measures aimed at controlling the coronavirus outbreak.
The number of so-called inactive individuals rose 4.1% to 5.3 million from the previous quarter of this year. That had the impact of pushing down the unemployment rate to 5.6% from 6.7% in the previous quarter, the Lisbon-based National Statistics Institute said on Wednesday.
The rise in dropouts “mainly explains the quarterly reduction observed in unemployment,” the institute said in a statement, adding that the trend could reverse.
The Portuguese economy shrank a record 14.1% in the second quarter from the first three months. In May, the government started easing some of the confinement measures that it introduced in March in a bid to jump-start the 10 million-strong nation. It forecasts gross domestic product will shrink 6.9% in 2020 and expand 4.3% in 2021.
The number of jobless workers from services businesses decreased 14.5% in the second quarter, while those from industries including manufacturing, construction and energy fell 21.2%.