The unemployment rate in Portugal dropped from 15.7% to 13.6% in September compared to September 2013.
The rate means that there were 702,000 people in Portugal without work, down from 728,000 last September, according to government figures.
This was one of the largest annual drops in the eurozone, second only to Spain where the rate went down 2% to 24%.
The average rate for September in the eurozone was 11.5%. The region had more than 18 million people registered as out of work.
Germany and Austria remain the two eurozone countries with the lowest unemployment, while Greece and Spain retain their positions at the top of the list for highest unemployment.
Young people in the region did not fare well. While the eurozone average for people between 16 and 24 years old was 23.3%, this was only a slight drop from the 24% it had been last September.
Just over 3.3 million young people are expected to get by without work, of which 123,000 were in Portugal where the rate fell by just 1% to 35.2% in September.
The rate for young people in Portugal is dreadful, but is shocking in Spain (53.7%), Greece (50.7%), and Italy (43%).
