A new barometer published today looking at the level of insecurity among the remaining Portuguese population, the primary reason for worry and fear is, unsurprisingly, unemployment.
The 2014 Barometer analysed responses from 813 respondents from Lisbon, Oporto, Coimbra, Évora and Faro and 76% agreed, the fear of unemployment is the most important factor that contributed to their perception of insecurity in the country.
The second factor was the increase of violence in society at 44% and the third was worry over the practical application of justice - 36%.
Right on queue the Government today announced moves to support employment in the Algarve by extending the current incentive programme for job creation and extend from six to eight months the granting of wages support for businesses
The tweaked Algarve Training Programme is aimed at combatting the seasonality of employment in a region where the unemployment rate is high, especially off season.
The scheme gives incentives to businesses related to tourism, trade, construction, hotels and catering, to renew workers’ contracts to cover the low season and to give training.
All well and good but the main ‘structural change’ still being bickered over is the proposed alteration to collective bargaining agreements which prevent more jobs being opened up, according to employers.
One of the sticking points is legislation that calculates dismissal pay-offs and whether these should include compensation based on the salary of the employee, or include the payment of supplements, allowances and other fringe benefits.
This was one of the most controversial changes in the first version of the government's structural plan which received harsh criticism from union confederations and has not been sorted out despite years slipping by.
Extending the Algarve Training Scheme is a small tweak to a system that is not widely used or understood. Where it has been adopted, many employees complain of being used as pawns in a game where their employer can access taxpayer money to subsides a proportion of workers’ wages.
More cost effective measures would include the cancelling of the tolls on the Via do Infante motorway in the Algarve, reducing VAT for restaurants back to the 12% level, and increasing the marketing resources available to the regional tourism board.
Tinkering with employment schemes may not be the answer in attracting tourists to the region which would increase employment. No buisness will take on workers where there is no work to do, wahtever the level of government support.
