OECD warns that pandemic endangers more than 40% of jobs in Algarve

Algarve may be one of the most affected regions at European level

The regions where tourism has more weight face a greater risk of job destruction, warns the Organization for Economic Cooperation and Development (OECD), estimating that, in the Algarve, more than 40% of jobs may be lost.

The OECD estimates that employment could fall, on average, between 4,09% and 4,98% in 2020 in the countries that are part of the organization, due to the pandemic, and the impact of this crisis differs from country to country and even from region to region.

In the report on “Employment prospects”, released today, the organization led by Angel Gurría says that “the countries and regions where the pandemic had the greatest expression have registered more significant economic losses”, also pointing out that the economic impact in several regions “will vary according to their sectorial specialization ”, affecting the sectors most exposed to confinement measures or seasonality more significantly.

In this context, the organization points to regional differences in terms of the risk of job destruction, with the Algarve being among the most affected regions.

"Some of the biggest tourist destinations in Europe, such as Crete, islands in southern Greece, the Canary Islands and the Balearics (Spain), as well as the Algarve (Portugal) may lose 40% or more of jobs," says the report.

The data released today by the OECD estimate that the unemployment rate in the countries that make up the organization may reach 9,4% in 2020, a level higher than that seen in the financial crisis of 2008, which may worsen with new outbreaks.

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