Introduction

Youth have been significantly impacted by several crisis and austerity measures since 2011.

There is a concerted effort with programmes and policy measures to promote employment and entrepreneurship among youth, focusing on combating youth unemployment, addressing NEET (Not in Employment, Education, or Training) issues, and improving employment quality for youth, who are prone to precarious employment.

Portugal has the second-highest rate of precarious contracts in the EU. According to Eurostat, in 2022 Portugal was fourth with 16.6% precarious contracts, but by 2024 it moved to second place, overtaking Spain, with only the Netherlands having a higher percentage (27.2%).

Under the Ministry of Labour, Solidarity and Social Security, a public services network implements policies in this field. Interministerial collaboration is crucial in combating youth unemployment and promoting decent work conditions. For example, within the Youth Guarantee programme (Garantia Jovem), coordination is required between employment, education, economy, youth, foreign affairs (for international mobility), and the Presidency of the Council of Ministries, which integrates the Directorate-General for Local Authorities. 

Social partners also play a significant role in policy creation and solution-seeking through social dialogue via the Standing Committee for Social Dialogue and other tripartite bodies. Non-governmental organisations are active participants, such as the National Association of Young Entrepreneurs and the Foundation of Youth in entrepreneurship. The Commission for Equality in Labour and Employment (CITE) acts as a national mechanism for non-discrimination in the labour market (see section 3.2).

Political commitment and national efforts are supported by the European Structural and Investment Funds (ESIF). Portugal 2030 includes interventions in active labour market policies addressing demographic challenges alongside unemployment. Additionally, the State provides incentives for hiring youth on open-ended contracts through direct hiring subsidies and reduced contributory rates for five years. Since 2017, the public employment service (PES) offers financial incentives to convert traineeship contracts into open-ended employment contracts.

Existing initiatives and programmes focused on entrepreneurship education are developed at national, regional, and local levels. Entrepreneurship is promoted by the State and locally. The current national strategy for Entrepreneurship – StartUp Portugal – aims to encourage entrepreneurial spirit by highlighting Lisbon's entrepreneurial ecosystem, recognised as the European Entrepreneurial City, and the thriving entrepreneurial culture in Portugal. This culture results from events like the Web Summit Lisbon, influencing entrepreneurship policies targeted at youth and encouraging technological entrepreneurship in creative industries and green and blue economy fields (see section 3.10).