The report highlights recent employment and production growth in the sector, but cautions that the sector does not seem well prepared for the structural transformation towards electrification the sector is undergoing globally, caused by technological change and increasing pressure through environmental legislation.

Unlike most competitor countries, the sector in Portugal shows low investment rates and instead employed a growth strategy focused on cost control through wage suppression and increasing contractual segmentation between permanent and temporary contracts. Its ownership structure and investment structure are heavily tilted towards foreign ownership, making it more difficult for local actors to take strategic decisions in the country.

To aid Portuguese constituents in navigating the changes ahead, the report outlines future scenarios and details a set of policy considerations in four areas of action to better address the challenges ahead: promoting policies for economic and employment-intensive growth; supporting business in navigating green and digital transitions; protecting workers through upskilling and social security; and embedding technological change at all levels of social dialogue.