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Portugal has successfully completed a demanding reform and adjustment programme and is starting to see the benefits. Action to promote equity and quality in education and further labour market reforms are now necessary to help the country secure its future prosperity, according to a new OECD report.


“Portugal has been successful in dealing with the immediate aftermath of the crisis,” said OECD Secretary-General Angel Gurría, launching the report in Lisbon with Portuguese Prime Minister Pedro Passos Coelho. “Developing the right skills and making sure they are deployed effectively will be the essential foundation for Portugal’s long-term prosperity and competitiveness.” 

The OECD Skills Strategy Diagnostic Report – Portugal presents a diagnosis of the country’s skills challenges and provides a solid basis for identifying possible actions to enhance the development, activation and use of skills.

The report identifies 12 skills challenges for Portugal distilled from four interactive diagnostic workshops held in 2014 with a wide range of stakeholders. To meet Portugal’s future skills needs, pertinent and high quality adult education and training will be required, while educational attainment among young people throughout upper secondary and higher education needs to be increased.

Further reforms are also needed to facilitate stable employment and good quality jobs. A high share of workers, notably young people, is employed on temporary contracts. These workers face higher job insecurity and fewer opportunities to participate in adult education and training provided by employers.


Financing a more equitable and efficient skills system will also be key. Balancing Portugal’s budget in the short and long term will require close attention to the allocation of scarce resources between sectors.