Pandemic threatens 40% of Algarve jobs – OECD

  • Lusa
  • 7 July 2020

The Organisation for Economic Cooperation and Development (OECD) estimated that more than 40% of jobs could be lost in the Algarve.

The regions where tourism carries most weight face a greater risk of job destruction, the Organisation for Economic Cooperation and Development (OECD) warned on Tuesday, estimating that more than 40% of jobs could be lost in the Algarve.

The OECD estimated that employment could fall on average between 4.09% and 4.98% in 2020 in the countries that are part of the organisation, due to the pandemic.

In the report on “Employment prospects”, released today, the organization led by Angel Gurría stated that “the countries and regions where the pandemic has had the most significant economic losses”, noting also that the economic impact on the various regions “will vary according to their sectoral specialisation”, affecting more significantly the sectors most exposed to containment measures or seasonality.

In this context, the organisation pointed to regional differences in terms of the risk of job destruction, with the Algarve appearing among the regions most affected.

“Some of the largest tourist destinations in Europe, such as Crete, southern Greek islands, the Canary Islands and the Balearics (Spain), as well as the Algarve (Portugal), may lose 40% or more of jobs,” the report said.

Data released today by the OECD estimated that the unemployment rate in the countries that make up the organisation could reach 9.4% in 2020, a level higher than in the 2008 financial crisis, and could worsen with further outbreaks.

Several indicators point to a scenario of worsening employment and unemployment, with the OECD pointing to a 35% drop in the number of job offers ‘online’ between 1 February and 1 May and a decrease in hours worked in the first months of this crisis to more than 10 times the drop registered in the initial moments of the previous crisis.