The Industry & Energy Transition Index: Portugal

Industry employment

Progress in terms of absolute number of jobs related to industry and industry share of total jobs in the economy

In absolute terms, the number of jobs in the manufacturing industry (826,000 jobs) decreased in 2023 compared to 2022. In fact, 2022 had been the best year in the decade, with 838,000 jobs. In 2013, the manufacturing jobs were at their lowest point—705,000.

In a similar trend, the manufacturing sector represents a declining share of total employment in the Portuguese economy. In 2023, that share reached the lowest levels observed in the past decade (16.6 percent), almost one percentage point lower than the average of the five years prior to the COVID-19 pandemic (2014–19).

 

Subindicators

Number of industrial jobs | Share of industrial jobs

Indicator definition

The industry employment indicator looks at jobs in manufacturing (according to PORDATA, which breaks down jobs across sectors). It is the combination of two subindicators: (1) the absolute number of jobs related to manufacturing; and (2) the share of total jobs in the economy.

We focused on manufacturing (versus other sectors) to try to capture the core of the Portuguese industry.

Progress assessment

Each subindicator’s progress is calculated keeping the current growth trajectory. The umbrella indicator takes the results of the two subindicators in equal proportion. If either of the two indicators is lagging, the overall result will be lagging. Both indicators need to be leading to generate an overall leading result for the industry employment indicator.

This employment analysis is primarily based on historical data, disregarding the influence of other trends, such as demographic or technological and innovation trends.

Number of industrial jobs

The number of jobs in the manufacturing industry decreased to 826,000 in 2023.
Subindicator definition
Jobs related to the manufacturing industry, in absolute value.
Progress assessment
The most recent data point is 826,000 jobs, based on PORDATA data. To assess progress, a linear curve replicating the trend registered in the 2010–191 period is drawn up to 2030. The arrival reference is 879,000 jobs. To that curve, a standard deviation (based on the same historical data) is removed or added to create an on-track range. As the progress is within that range, the indicator is on track.

Share of industrial jobs in total employment

The industrial sector represents a small and declining share of total jobs in the Portuguese economy, 13.6 percent in 2023.
Subindicator definition
Jobs related to the manufacturing industry, as a share of total jobs in the economy.
Progress assessment
The most recent data point is 16.6 percent share of industry in total employment, based on PORDATA data. The 2030 reference was fixed at the 2014–19 average of 17.5 percent. The on-track range was defined by removing or adding the 2014–19 standard deviation. As the most recent progress is below that range, the indicator is lagging.
1 Base horizon/standard deviation for our analysis is 2014–19; in this case, we considered a wider sample to account for both positive and negative economic cycles, which deeply affect employability.

Detail view

Energy transition KPIs
Greenhouse gas emissions reductionRenewables in energy mixElectric vehicle salesRenewable molecules adoptionEnergy dependencyNetwork readinessHousehold electricity pricesIndustry electricity prices
Industrialization KPIs
Industrial gross value addedVehicle productionInvestment in fixed assetsR&D investmentIndustry employmentIndustry exports

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