The Algarve’s official unemployment rate rocketed in the last quarter of 2014, from 11.2% to 14.9%, making the tourism-dependent region the worst performer in the country.
The national unemployment rate grew from 13.1% to 13.5% in quarter 4, but only four regions recorded increases, led by the Algarve.
The deterioration in the labour market was concentrated into three regions of the country, the Algarve, the Alentejo and Madeira.
The Algarve stands out with a rise of 3.7% from the previous quarter compared to Madeira with 2.1% and the Alentejo with 1.9%.
The rest of Portugal saw a slight rise in the official jobless figure from 10.5% to 10.7%.
After the summer is over and the tourists gone, the short term contracts are finished and the jobless figures rise. This is the reality in a region where tourism is the largest employer, and where employers cannot afford to keep staff on through long and unprofitable months.
Despite a recent and welcomed emphasis by the Algarve's regional tourism board on out-of-season tourism, this will only ever represent a series of smaller niche markets needing fewer staff to service their needs.
The big hotels are big employers and when operating at low capacity, shed staff and cut costs, many of them closing for the winter months.
Jobs in other economic sectors are few and far between and despite the popularity of self-employment and starting up a business the employment of staff ‘on the books’ is bureaucratic and expensive.
The latest data from the National Statistics Institute also shows that agriculture and fisheries was the national sector hardest hit with a rise in unemployment year on year despite massive funding of new agricultural projects and a supposed export-led resurgence.
The national unemployment rate ended 2014 at 13.9% against the government target of 14.2%. This compares well with the 2013 year end record figure of 16.3%.
Despite the improvement of the annual unemployment rate, the rate recorded in the last quarter of the year showed a sharp deterioration over the third quarter.
