In 2021, companies in Portugal forecast a 4.2 percent increase in average wages, with a 5.2 percent increase in 2022

June 14, 2022

• In May 2022, 56% of enterprises in Portugal report that they had already reached or exceeded their pre-pandemic activity level. In Accommodation and food services this proportion is lower (37%).

• 54% of enterprises foresee an increase in turnover in 2022 compared to the previous year and only 14% expect a reduction. In Accommodation and food services the percentage of enterprises expecting an increase in turnover is more significant (75%).

• For 83% of enterprises, the current international environment  has a negative or very negative impact on the evolution of turnover in 2022, with Manufacturing and energy standing out, with a proportion of 90%. Almost 60% of enterprises consider that the rising in energy costs and other raw materials/intermediate goods are very relevant factors with a potential negative impact on their activity.

• 67% of enterprises expect to increase sales prices in 2022, with 48% anticipating increases of at least 5%. Of enterprises that expect to raise prices in 2022, 60% point to the increase in costs with raw materials/intermediate goods (non-energy) as the main reason.

• Enterprises point to an annual growth in average wages of 4.2% in 2021 and expect a 5.2% increase in 2022. Among the reasons pointed out as very relevant for wage increases in 2022 are the increase in the minimum wage and the need to retain workers (28% and 27%, respectively).

• 27% of enterprises (corresponding to 47% of total employment) estimate an increase in the number of persons employed in 2022 compared to 2021. As for the use of remote working, 24% of enterprises report having, in May 2022, a higher proportion of persons employed in this situation compared to the pre-pandemic period.

• The flexibilization of tax payments and deferral of social security contributions is the public support measure mentioned by a higher proportion of enterprises as relevant or very relevant (37%). In the absence of additional policy measures, 82% of enterprises say they will be able to remain in operation without restrictions in 2022.

• The evolution of the inflation and the war in Ukraine are the factors most often mentioned by enterprises as having a negative or very negative impact on their activity in 2022 (82% and 75% of enterprises). In contrast, 52% of enterprises expect a positive or very positive impact from the evolution of demand directed towards the enterprise.

Source: Statistics Portugal
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