The OECD has also asked Portugal to increase incentives for a longer working life to combat labour shortages.

In Portugal's 'Economic Survey' released, the OECD points out that labour shortages and an ageing population "are expected to affect Portugal's economic growth, despite recent high influxes of foreign workers."

This shortage is seen in key sectors, mainly manufacturing, construction, and healthcare, as well as in seasonal sectors, and many companies report difficulties in finding suitable, qualified workers, it notes.

Thus, for the OECD, some measures that could mitigate the situation are, for example, strengthening the integration of older workers, the long-term unemployed, and young people into the labour market through lifelong learning policies, and by increasing incentives for a longer working life.

"Improving the quality and governance of adult education and vocational training should be a priority," the organization emphasizes, adding that "establishing national quality standards for lifelong learning courses and improving coordination in the lifelong learning system would support uptake and better alignment of skills with labour market needs."

In addition, "strengthening training for older workers, improving working conditions through more flexible work arrangements and more robust occupational health policies would help extend working life," the organization argues.

The OECD also highlights other types of measures, such as reducing the "still high use of temporary contracts," as well as "facilitating the integration into the labour market of migrants, women and older workers," with a view to higher employment rates and reducing income inequality.