It is more than a year that the unemployment rate and the number of unemployed decrease in Portugal. This is good news. However to have a more complete picture of the labor market dynamics we must look at the evolution of the labor force and the number of employed people. Using the two data published, the unemployment rate and the number of unemployed, we can back up the labor force and the number of employed. The figure shows the four variables is that the unemployed have found a job in the first three quarters of 2013 (100k jobs created) but appear to have dropped out of the labor force (80k) during the last two quarters. (click to enlarge)
Here is a medium run view. (click to enlarge)
