The Positive Impact of Immigration on Portuguese Society: A Case for Inclusive Integration
Migration is often influenced by political and economic factors, conflict, instability, and more recently, the impacts of climate change. Regardless of individuals’ diverse backgrounds or whether they choose or are compelled into relocation, they share a common goal: seeking a new beginning. In their quest, migrants aim for integration and connection with their newly chosen country.
According to new report recently published by the Portuguese Migration Observatory, in 2022 immigrants were responsible for a positive balance of €1604.2 million for Social Security, marking the “highest amount ever recorded.” Migrants in Portugal represents only 7.5% of the total population, a figure higher than in previous years. In 2019, for example, foreigners accounted for only 5.7% of all residents.
Overall, in 2022, foreigners contributed €1861 million to Social Security and only benefited from around €257 million, representing 13.5% of the contributors to the system, according to the report.
Portugal stands out as a classic example that has recently witnessed a significant surge in diverse immigration, bringing with it a myriad of benefits that extend beyond cultural and gastronomic enhancement. This report released by the Observatory helps us grasp into the multifaceted contributions of migrants to Portuguese society, dispelling common misconceptions and illuminating the positive impact of inclusive integration.
The influx of migrants has injected vitality into the Portuguese economy, with substantial contributions evident across various sectors. From increased revenue through Value Added Tax (IVA) on consumer goods to income tax (IRS) and property transaction taxes, migrants have played a pivotal role in bolstering the nation’s financial landscape. Moreover, the establishment of new businesses, job creation, and the development of city centers — namely Lisbon and Porto underscore the dynamic influence of immigration on Portugal’s economic trajectory. This economic stimulation is a testament to the diversity and innovation that migrants bring to the table.
As the labor market becomes more competitive due to immigration, the natural progression is an upward trend in wages. The infusion of diverse skill sets, talents, and perspectives fosters an environment where merit and innovation thrive, ultimately benefiting the entire workforce.
Mitigating Strain on Public Services:
While concerns about pressure on public services and the real estate market persist, a nuanced analysis reveals a more balanced reality. Many immigrants, particularly those with higher socioeconomic status, contribute to the economy and society without burdening public health services. Private health insurance uptake among these individuals further alleviates strain on the National Health Service (SNS). According to the analysis conducted by the newspaper Público, on 18th December, foreigners have a higher employment rate than Portuguese citizens but are engaged in precarious, poorly paid, and riskier jobs, particularly in sectors such as construction, hospitality, catering, and domestic services. They are often in positions below their qualifications, work longer hours weekly, and rely much less on Social Security benefits, despite having an unemployment rate more than double that of Portuguese citizens.
Real Estate Dynamics and Job Creation:
The growth in the real estate market, driven in part by immigrant investment, has been a catalyst for job creation. Families, both Portuguese and immigrant, have seized opportunities for property transactions, generating revenue that cascades through various sectors of the economy.
While rental prices have increased in some urban centers, it is essential to recognize that much of this market pressure arises from the rehabilitation of previously abandoned buildings without a strategic plan, adapting to the market timings in a slow gradual, progress. Government housing policies, or the lack thereof, and a low market inventory have also contributed to this phenomenon.
Acknowledging the emotional and resistant reactions to the recent shifts in migration patterns, it is crucial to recognize the positive contributions made by immigrants to Portuguese society.
Portugal stands at a crucial juncture, navigating the complexities of increased immigration. The evidence overwhelmingly supports the notion that a well-integrated and diverse immigrant population is an asset to any society. As we move forward, it is imperative to focus on inclusive policies that address the needs of both Portuguese and immigrant communities, fostering a harmonious and prosperous future for all.
