Foreign labour in Portugal's construction sector accounts for almost four in every ten people employed. The share of foreign workers has nearly doubled since 2010, when they represented 15% of the construction workforce.

The figures demonstrate the sector's significant dependence on foreign labour and immigration to meet the workforce requirements increasingly demanded by Portugal's property market.

Data from the Bank of Portugal show that around 162,000 of the 427,000 workers in the construction sector were born abroad, according to figures analysed for the second quarter of 2026.

The central bank also considers this development to be “one of the sector's most significant transformations”, highlighting that the proportion of foreign workers continues to increase. For statistical purposes, place of birth rather than nationality is analysed, meaning the figures may also include Portuguese citizens born abroad.

Challenges in construction

Employment in the construction sector declined following the 2008 financial crisis. However, recovery began in 2007 and employment has already surpassed levels recorded 20 years ago.

The recovery has been particularly significant in building construction and specialised activities, which account for most workers in the sector. The Bank of Portugal, cited by Jornal de Negócios, reports that almost 90% of workers are employed by small and medium-sized enterprises, while larger companies employ no more than 58,000 people. Nevertheless, the market is struggling to address the labour shortage, with construction industry associations having already stated that Portugal needs around 90,000 additional workers to meet demand.

Although wages have increased, they remain below the economy-wide average. In the second quarter of 2026, the average monthly wage in construction stood at €1,380, below the €1,527 paid across non-financial companies.

However, the Bank of Portugal highlights that wages are higher in civil engineering and larger companies, while acknowledging that salaries remain insufficiently competitive in a context marked by labour shortages.

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