Rise in Unskilled Labor Serves Madeira's Tourism Industry

Rise in Unskilled Labor Serves Madeira's Tourism Industry

Coinciding with Pestana's CEO's call for increased unskilled worker immigration to Madeira, recent data confirms a rise in the island's unskilled workforce.

18,900 Unskilled Workers In Madeira

Recent statistics from the Direção Regional de Estatística da Madeira reveal a notable rise in the number of unskilled workers in the region. According to the latest data, there were 126,700 employed individuals in Madeira during the second quarter of this year. Out of this number, 18,900 were classified as unskilled workers (men: 8,400; women: 10,500) making this sector the third largest in terms of employment within the region.

Jornal da Madeira: Unskilled workforce on the rise

Hotels Ask For Unskilled Workforce And Immigration

The increase in unskilled workers is not surprising, given that the booming tourism industry depends heavily on low-paid, unskilled labor. Recently, Pestana's CEO, the company that made a 100 million net profit in 2023, stressed the need for Madeira to provide more housing for immigrants and unskilled workers to support this growing demand by his industry.

The CEO of Pestana says that "doing hospitality without thinking about immigrants is completely impossible nowadays." Therefore, he urges the creation of conditions to welcome those arriving in the country, particularly in terms of housing. He also refuses to speak of an "excess of tourists" in Portugal.

José Theotónio (CEO Pestana Group) in Jornal de Negocios

Youth Unemployment and Low Wages

The data also highlights a concerning trend: 5,800 young people in Madeira are neither studying nor working. Additionally, for the second quarter of 2024, the average net salary was reported at 1,000 euros, reflecting ongoing economic challenges for many residents. However, this represents an 8.8% increase compared to the same period 12 months ago (938 euros).

Definition of Unskilled Labor

Unskilled labor refers to a segment of the workforce with limited skills or minimal economic value for the tasks performed. Typically, it involves individuals with lower educational qualifications, such as a high school diploma, or even less. This often results in lower wages. Jobs that do not require specific education or specialized experience are common for unskilled labor.

Understanding Unskilled Labor

Unskilled workers form a significant part of the general labor market, performing daily production tasks that don't rely on technical skills. These positions usually involve simple, repetitive tasks and can often be learned within 30 days. Jobs of this nature require little to no education or training and are typically low-paying and considered entry-level.

When describing a worker, unskilled labor refers to the individual's lack of education or experience, limiting them to basic positions that require minimal training. Unskilled workers typically earn minimum wage.

Related Terms:

  • Low-skilled labor: Requires basic training but still denotes a lack of significant education or skills. Examples include entry-level jobs in food services or retail.

  • Semi-skilled labor: Requires basic knowledge or experience for tasks that are more complex than unskilled roles. Examples include delivery drivers and customer service representatives.

  • Skilled labor: Requires specialized skills, education, or experience for specific tasks.

Sources:
DREM
Jornal da Madeira
Jornal de Negocios

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