The Azores remain among the regions most affected by structural inequalities in Portugal’s labor market, according to a new study by Randstad released for International Workers’ Day—highlighting a widening divide in wages, qualifications, and career mobility between the archipelago and the country’s main economic centers.

In a national context where working in Lisbon can translate into the equivalent of nearly three additional salaries per year, the Azores present a markedly different reality—one defined by lower earnings, fewer leadership opportunities, and limited access to high-value professions.

The wage gap is stark. While the average net monthly salary in Lisbon reaches €1,469, incomes in the Azores rank among the lowest in the country. The disparity reflects a less diversified economic structure, with fewer sectors requiring advanced skills and offering higher compensation.

For workers across the islands, the impact is tangible. Lower wages translate into reduced purchasing power, particularly in Ponta Delgada—the region’s largest urban center and economic hub—where much of the archipelago’s population and activity is concentrated.

Leadership Roles Scarce

One of the most telling indicators of inequality is the limited presence of Azorean workers in leadership positions. Just 1.6% occupy management or executive roles—a figure significantly below the national average and far removed from Lisbon, where 42.3% of workers are employed in qualified or leadership functions.

The numbers point to structural barriers in accessing higher-value careers, constraining not only wages but also long-term professional progression.

Lower average qualification levels among the workforce reinforce this cycle. Employment in the Azores remains concentrated in less specialized roles, tied to an economy that depends heavily on the public sector, traditional services, and primary industries. Compared to mainland regions, the archipelago shows lower technological intensity and productivity—factors that directly influence wage levels and job complexity.

This structure helps explain the prevalence of shorter working hours and less technically demanding roles—positions that, while stable, offer limited upward mobility and lower compensation.

Geography Still Determines Opportunity

Unlike Lisbon or the Setúbal Peninsula, where advanced services and large companies cluster, the Azores face persistent constraints linked to insularity, market scale, and the challenge of attracting transformative investment.

The study underscores a broader national pattern: in Portugal, “postcode” continues to shape professional trajectories. In the Azores, that reality is even more pronounced, with restricted access to qualified employment and reduced labor mobility.

According to labor market analyst Isabel Roseiro, the country’s employment landscape remains deeply conditioned by geography, underscoring the need for integrated policies aimed at strengthening territorial cohesion.

For the Azores, the path forward is clear—but far from simple. Increasing workforce qualifications, diversifying the economic base, and creating conditions to retain talent are critical steps if the archipelago is to narrow the gap with Portugal’s leading development hubs.

Absent such changes, the risk is not only stagnation, but continued divergence.

Translated and adapted from Diário dos Açores – Paulo Viveiros, director.