In 2026, Portugal’s labor market is set to experience a blend of technological acceleration alongside increasing valuation of human elements, emphasizing flexibility, well-being, and continuous development. Concurrently, the talent shortage, especially for skilled labor, will persist as a core challenge, necessitating a continuous enhancement of the skills among new recruits.
In a market where demand for qualified talent surpasses supply, productivity and Human Resources (HR) strategies will increasingly focus on employee experience.
Addressing flexibility is crucial. Adjustable schedules and hybrid work (where feasible given job nature) will solidify as norms, transcending mere benefits despite some companies’ move towards fully in-person models. Hybrid models are pivotal in attracting and retaining talent, and flexibility will likely equate to salary packages as a decisive factor.
Mental health and well-being will gain prominence, becoming strategic focal points, possibly mandatory to address psychosocial risks. Expect companies with resources to revise benefit packages to encompass financial support and holistic well-being programs.
Non-salary benefits like company culture and purpose, particularly valued among younger generations, will continue to be a priority through inclusive environments and clear, strong purposes. Companies will align strategically in communication, concrete employer branding actions, and foster more humanized, collaborative leadership styles.
Salary transparency will also be pivotal in the upcoming year. Regulatory evolution and equity focus are steering this corporate directive in Portugal. The disclosure of salary ranges in job postings, both in Portugal and throughout the European Union, is anticipated to become standard, potentially as a legal requirement. EU Directive 2023/970 obliges Member States by June 2026 to implement procedures impacting companies, requiring them to internally assess and transparently disclose salary bands. These norms demand clear organizational criteria for pay progression and disparities between roles. However, internal dissatisfaction may arise if advertised ranges exceed current employees’ earnings in similar roles.
The norms could deeply impact internal salary disparity corrections and reshape recruitment processes for greater transparency and alignment. They could reduce time spent on unsuitable salary-based resume screenings and empower candidates to make informed, expectation-aligned decisions. By mid-2026, salary range disclosure could also become a competitive factor in Portugal’s job market.
Regarding technological acceleration, Artificial Intelligence (AI) will transition from a trend to an operational priority in HR. Automating processes where AI manages repetitive tasks in recruitment, like initial CV screening and interview scheduling, will increasingly become the standard, freeing HR professionals to focus on strategy and candidate experience.
Recruitment and selection processes will be designed from the start to incorporate predictive algorithms and data analysis aimed at efficiency and potential bias reduction. The strategic use of big data will allow anticipation of talent needs and identification of turnover patterns.
Recruiters, whether internal or external, will tend towards being more strategic, digital, and humanized.
For a professional recruiter in 2026, understanding AI and emerging technologies will be an operational necessity to optimize candidate identification. The focus will be on strategically using these tools to enhance speed, efficiency, quality, and impartiality in the process. Automating administrative tasks is expected to allow greater focus on the experience and analysis of both necessary hard skills and behavioral soft skills. Recruiters will become more analytical, using data to forecast turnover, evaluate performance, or optimize sourcing channels for candidates.”
