a) A low level of educational attainment of the workforce, which remains a serious
problem, namely, for the adaptability of the labour market and the transition
to the knowledge-based society.
b) The existence of groups with particular special insertion problems (e.g. young
people, elder workers, women, ethnic minorities and disabled people).
c) A vulnerable sector structure, mainly based on traditional labour intensive activities,
with low productivity and wage levels.
d) A business structure mostly based on small and micro companies. These firms
are often characterized by a low degree of adaptability and innovation, lie on
low skill jobs and offer few training opportunities.
e) A weak level of average productivity, as compared to the other EU countries.
f) The persistence of important regional asymmetries, mostly based on the different
characteristics of the production activities and on the qualification level of
manpower, creates considerable disparities in the labour market.
g) High levels of informal work.
These are persistent, structural problems that affect the Portuguese labour market,
even in periods of economic and employment growth10, and are aggravated and/or
represent additional risks within the existing context of liberalization and intensification
of markets competition and deregulation on a world scale. Let us concentrate on
some of the aspects identified above.
One of the well-known characteristics of the Portuguese labour market is related to
the low salaries and low educational and qualification skills. In this regard, we have to
look back to the eighties to understand the economic and political orientation undertaken
by the Portuguese government in order to re-launch competitiveness. After having
lost its former African colonies and with the failure of redistributive policies developed
after the revolution of 1974 (e.g. institutionalization of the minimum wage, nationalization
of important sectors of the economy such as banking, insurance, transport and
electricity), the Portuguese economy entered a period of recession that culminated in