According to data released by the Strategy and Planning Office (GEP) of the Ministry of Labour, almost a thousand more workers had their contracts suspended or their working hours reduced than in September.

“In October 2025, the total number of layoff situations with compensatory pay (normal concession, as provided for in the CLT) was 5,470. Compared to the previous month, there was an increase of 987 layoff instalments, which represents a growth of 22.0%,” says the summary published by the GEP.

However, compared to October 2024, the number of workers covered by this scheme decreased. 677 fewer instalments of this type were processed, representing an 11% drop.

It's important to explain that lay-off is a scheme provided for in the CLT (Portuguese Labor Code), which allows companies in crisis to reduce the working hours of their employees or even suspend employment contracts, receiving, in parallel, support from Social Security for the payment of salaries.

Now, in October, of the total number of workers covered by lay-off, the majority (3,571 people) had their working hours reduced. Compared to September, there was a 44.1% increase (1,093 more instalments). And even compared to October 2024, there was a jump: in this case of 10.2% (331 more instalments processed).

On the other hand, 1,899 of the workers who were on lay-off in October had their employment contracts temporarily suspended.

“In monthly terms, 106 fewer layoffs were registered, representing a decrease of 5.3%. Compared to the same period last year, there was a decrease of 1,008 layoffs, corresponding to a reduction of 34.7%,” indicates the GEP. Even with the contract suspended, workers receive a portion of their salary, an amount that is paid partially by the employer and partially by Social Security.

On the other hand, the released note reveals that 282 employers resorted to layoffs in October, 72 fewer than in September and 59 fewer than a year ago.