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1. Main challenges to social inclusion

2. Definitions and concepts

Main challenges to social inclusion

Over the past decades, Portugal has made significant strides in improving citizens’ living conditions, largely due to the implementation of comprehensive public policies targeting poverty reduction and social inclusion, alongside the strengthening of the social protection system.

Notably, the progressive expansion of the education system has played a crucial role, including the extension of compulsory education to Year 12 in 2009. This has been complemented by increased availability of social support infrastructure and services, as well as the continued development of the National Health Service.

In recent years, a coordinated set of measures has been introduced to boost employment, restore household incomes, promote greater fiscal justice and equity, and reinforce the Welfare State.

Poverty

In 2015, 26.6% of the Portuguese population was at risk of poverty or social exclusion, with young people particularly affected (Rodrigues, 2016). Among those aged 15 to 29, the rate stood at 30.7%, up from 24.3% in 2005, reflecting a worrying trend of youth vulnerability (Source: Eurostat (ilc_peps01n), 2015).

Over the past decade, Portugal has made measurable progress in reducing poverty and social exclusion. According to Statistics Portugal (INE), the proportion of the population at risk of poverty or social exclusion decreased to 19.7% in 2024, based on 2023 income data. This represents a significant improvement compared to 2015, although the pace of reduction has slowed in recent years.

Among young people aged 15 to 29, the situation remains concerning. In 2024 (Source: Eurostat), 24.1% of Portuguese youth were still at risk of poverty or social exclusion, a modest improvement from 30.7% in 2015, but still above the national average. This age group continues to face structural challenges, particularly in accessing stable employment and affordable housing.

The national social protection system has played a pivotal role in mitigating poverty. Social transfers related to illness, disability, family support, unemployment, and social inclusion reduced the at-risk-of-poverty rate by 4.2 percentage points in 2022, although this impact was slightly lower than in previous years (Source: INE). Despite these efforts, income inequality indicators such as the Gini coefficient and S90/S10 ratio have shown signs of deterioration, highlighting the need for more targeted redistributive policies.

Access to education and integration into the labour market remain essential pillars for full social inclusion. The expansion of compulsory education and continued investment in vocational training and youth employment programmes are critical to reversing the persistent risk of poverty among younger generations.

Education

Despite progress over the past decade, Portugal still records one of the highest rates of low educational attainment in the European Union. In 2024, 45.5% of individuals aged 25 to 34 in Portugal had only completed lower secondary education or less (ISCED 0–2), compared to the EU average of 16.4% [Source: Eurostat (edat_lfs_9903), 2024]. This stark disparity highlights the persistent structural challenges in the Portuguese education system.

Although the country has made strides in reducing early school leaving, the rate remains above the EU target. In 2024, 10.5% of Portuguese youth aged 18 to 24 had left education and training without completing upper secondary education and were not engaged in further learning, compared to the EU average of 9.3% [Source: Eurostat (edat_lfse_14), 2024]. While this marks a notable improvement from 13.7% in 2015, Portugal still faces difficulties in ensuring that all young people complete at least upper secondary education.

These figures underscore the importance of sustained investment in education and training, particularly in measures aimed at preventing early school leaving and promoting lifelong learning. Enhancing the quality and inclusiveness of education, expanding vocational pathways, and strengthening the link between education and the labour market are essential to improving youth outcomes and reducing social inequalities.

Unemployment

Portugal’s labour market has improved significantly since 2013, with the unemployment rate falling from 16.4% to 6.4% in 2025, aligning with the euro area average (European Commission, 2025).

However, youth unemployment remains a concern. As of May 2025, the unemployment rate for those under 25 in the EU was 14.8%, with Portugal recording a slightly higher figure (Eurostat, 2025). For the 25–29 age group, Portugal’s unemployment rate remains close to the EU average, though structural barriers persist.

Young people continue to face precarious employment conditions, with high rates of temporary and part-time contracts. The European Commission’s Joint Employment Report 2025 highlights that youth employment in Portugal remains fragile, with persistent skills mismatches and limited access to stable jobs (European Commission, 2025).

In response, Portugal has reinforced its commitment to the EU’s Youth Guarantee, particularly through the “Bridge to Jobs” initiative, which aims to ensure that all young people under 30 receive a quality offer of employment, education, or training within four months of becoming unemployed or leaving education (European Commission, 2025).

Young NEET

According to Eurostat, in 2024, the NEET rate for young people aged 15 to 29 in Portugal was 8.4%, remaining below the EU average of 11.0% (Eurostat - Statistics on young people neither in employment nor in education or training). This reflects sustained national efforts to improve youth employability and educational engagement.

However, NEET rates increase significantly with age. While the proportion of NEETs among 15–19-year-olds remains relatively low, it rises sharply among older youth. This pattern is consistent across the EU and is particularly pronounced among those with lower levels of education

Young people from vulnerable socio-economic context

Young people from vulnerable socio-economic backgrounds in Portugal continue to face significant barriers to social inclusion, despite recent policy efforts. National and EU-level strategies—such as those under the European Pillar of Social Rights—have increasingly focused on youth at higher risk of exclusion, including children of immigrants, Roma youth, and those from single-parent or low-work-intensity households (European Commission – European Pillar of Social Rights).

These groups are more likely to experience poverty, unemployment, and educational disadvantage, which in turn affect their health, safety, and long-term development. According to the Portuguese Ministry of Labour’s Strategy and Planning Office (GEP), these vulnerabilities are closely linked to intergenerational poverty, particularly in households with persistent unemployment or low labour market participation (MTSSS/GEP – Youth in Portugal).

The 2023 European Semester Country Report for Portugal confirms that, although overall poverty indicators have improved, youth from disadvantaged backgrounds remain at high risk of social exclusion, especially in urban peripheries and rural areas (European Commission – 2023 Country Report: Portugal).

Main concepts 

Descendants of immigrants: In Portugal, since the 1980s and until the end of the

1990s, intense migratory flows were witnessed, which led to a significant increase in the foreign population residing in the country, between the years 2000 and 2010. As a result of family reunion processes or by constituting new families in Portugal, most immigrants have children. These are children (aged between 0 and 14) and young people (aged between 15 and 30) who were born and/or grew up in Portugal (Machado and Matias, 2006). Although it is difficult to calculate the proportion of descendants of immigrants, the Portuguese population data from the 2011 Census allows us to gauge that 92,700 citizens of Portuguese nationality had at least one parent of foreign nationality (2011 Census; Strategic Plan for Migration, ACM, I.P., 2015).

Nationality law: in 2006, a new Nationality Law was introduced, which marks the change of principle for granting nationality: from a principle of ius sanguinis to a principle of ius solis. Under this amendment, there has been an increase in the number of descendants of immigrants born in Portugal that have acquired Portuguese nationality, which until then were subject to limitations on access to citizenship (Ferreira, 2014).

In 2018 came into force the Organic Law 2/2018, of 5th July, which extends access to original nationality and naturalisation to people born in Portuguese territory, making the eighth amendment to Law No. 37/81, of 3 October, which approves the Law on nationality.