Key moments
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The government guarantees that hiring incentives will not worsen. “This is not fighting for internships and a job,” accuses PS -
The IEFP commissioned studies on the “phenomenon” of youth unemployment -
IEFP analyzes 5,000 applications for new internships -
The Government wants “internships to be a contract” and “avoid financing employment situations through internships” -
New IEFP internships will be monitored monthly. Government open to improvements -
The Portuguese economy grows 1.9% in the third quarter compared to 2023. Compared to the previous quarter, growth was 0.2%
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The government guarantees that hiring incentives will not worsen. “This is not fighting for internships and a job,” accuses PS
The PS made several criticisms of the new measures, including the “elimination” of a labor bonus that rewarded companies that hired interns, and now there are increases in scholarships when there is a contract. Miguel Cabrita, PS deputy, says that “having an employment bonus that is seen as such is something stronger and more powerful than an increase that is lost in the middle of the provisions.”
The Secretary of State responded that there is a bonus for the company “if there is an employment contract after the internship” and guarantees that it is “higher than the bonus” that existed previously. “But now the internship measure itself does not include the bonus, which is included in the “Mais Emprego” ordinance (for the permanent hiring of the unemployed) and in the “Mais Talento” measure (incentive for permanent hiring).
Shortly afterwards he would clarify that now “the name they used to call the award is over” and that “there is support for higher value hiring and there is an increase in scholarships if the contract is awarded.” “The company will receive a higher value than it previously received for the prize,” he guarantees.
The PS contested the argument. Miguel Costa Matos, a socialist deputy, would respond that the labor bonus “was equivalent to two months’ salary” and that the Government had reduced “the hiring incentive in half.” “This is not fighting for an internship or a job,” he accused.
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The IEFP commissioned studies on the “phenomenon” of youth unemployment
In December, the Government will present two studies commissioned by the IEFP to try to understand the “phenomenon” of youth unemployment and young people between 16 and 29 years old who neither study nor work, of which there are 140,000.
The studies were carried out by the International Labor Organization (ILO) and a Portuguese university.
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IEFP analyzes 5,000 applications for new internships
Adriano Rafael Moreira also mentioned that the Institute of Employment and Vocational Training (IEFP) is analyzing around 5,000 internship applications (not the number of applications, but the number of applications that passed the preliminary selection phase).
This figure means, he says, that “there is a great response to internship requests.”
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The Government wants “internships to be a contract” and “avoid financing employment situations through internships”
The Secretary of State for Labor describes the objective of the new internship rules that an internship must always be followed by an employment contract.
“The percentage of success we want is an internship, a contract.”, he indicated. For Adriano Rafael Moreira, when an internship is not followed by a contract it is because “something failed” or because there was no real need or because there was no adaptation. This, he says, will be the “great challenge for IEFP recruiters”: “When starting the internship feasibility study, try to anticipate the probability that the internship will evolve into an indefinite contract.”
“We must avoid financing work situations through internships.”he stated, highlighting that this was one of the precautions the Government took with the changes. Adriano Rafael Moreira states that a European recommendation focuses on situations falsely supported through internships and justifies the reduction of the duration of internships from nine to six months with the fact that they have been “successful” at European level.
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New IEFP internships will be monitored monthly. Government open to improvements
The Secretary of State for Labor, Adriano Rafael Moreira, in a hearing in Parliament, guaranteed that the new IEFP internships will be monitored monthly in this first quarter of implementation, from October to December. And it says that it is available to accept proposals that improve support, but if the objective is to guarantee hiring after an internship.
“We will do a monthly follow-up to see if the statistics allow us to combat the problems of young people,” he stated in a hearing dedicated to the new active employment policies.
One of the changes criticized by the PS was the reduction of reimbursement in the case of subsidies paid to companies in the interior of the country. There he also admitted, without commitment, possible changes if such a request were made at the level of parliamentary groups or civil society entities. “We are open to debate,” he said.
But he stressed that it is necessary to understand for what purpose. The measures in general will be implemented “without prejudice to the fact that in their implementation, in the debate, some situations may be improved, but with the objective of creating labor relations, creating employment contracts for an indefinite period where the worker is needed.” .
Adriano Rafael Moreira guarantees that the measures that the previous government is implementing or that will be implemented “will be maintained.” “There is no need to fear that everything that has been detected as useful in the past will be implemented. “There is no prejudice about this,” he said.
The Secretary of State justified the new practice standards by maintaining the youth unemployment rate at high levels, above the European average, and the number of 140,000 young people who do not study or work.
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The Portuguese economy grows 1.9% in the third quarter compared to 2023. Compared to the previous quarter, growth was 0.2%
The Portuguese economy grew by 1.9% in the third quarter of this year, compared to the same period last year (year-on-year variation), according to preliminary data from the INE.
In the second quarter, GDP had grown by 1.6%, now accelerating growth in the quarter that covers the summer months (June to September), and in which the drop in the IRS began to be visible in salaries.
In terms of quarter-on-quarter growth, growth was 0.2%, maintaining the quarter-on-quarter growth of the previous quarter.
In Spain, growth was 3.4% year-on-year in the quarter and 0.8% quarter-on-quarter, the fifth consecutive quarter with growth rates equal to or greater than 0.7%.
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Good day.
We start this live blog here to follow national political and economic news. Today the debate begins on most of the State Budget proposal for 2025, which will be voted on tomorrow, with the commitment of the PS to make the document viable.
The debate is scheduled to begin at 3:00 p.m. in Parliament. Before and this morning, the INE will release the first reading of economic growth for the third quarter.
We have closed yesterday’s live blog in which we followed the parliamentary hearing of the Minister of Labor. You can recover it here.
Government available for a “structural increase in pensions” if there is budgetary slack
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Source: Observadora
