Higher qualifications reveal progress alongside persistent social inequalities.
LISBON, Portugal | June 2026
Portugal’s younger generations are now among the most highly educated in the European Union after three decades of expanding compulsory education, reducing early school leaving and increasing access to universities. The Annual Education Review 2026, prepared by EDULOG of the Belmiro de Azevedo Foundation, presents the country as one of Europe’s most significant educational transformation stories. The report shows particularly strong growth in higher education and master’s degrees. It also warns that family income, age and migration background continue to shape academic outcomes.
Approximately 43 percent of Portuguese people between the ages of 23 and 27 held a higher-education qualification in 2024. Nearly half of those aged 18 to 20 were already studying at that level, an increase of 13 percentage points compared with the period before the COVID-19 pandemic. The expansion has also reached master’s programs and Higher Professional Technical Courses. These figures place Portugal’s youngest adults closer to the educational leaders of the European Union.
The change is striking because Portugal entered the democratic era with relatively low education levels and widespread early departure from school. Successive governments expanded public education, raised compulsory schooling requirements and encouraged more students to continue beyond secondary level. Universities and polytechnic institutions also increased their capacity. The result is a generation with qualifications that differ sharply from those held by many of their parents and grandparents.
Portugal now has one of the European Union’s highest proportions of people with master’s degrees. The pattern is visible among recent graduates and more experienced workers, suggesting that advanced education has become an important part of the country’s professional culture. Master’s programs are increasingly viewed as a normal continuation of undergraduate study in several fields. That trend strengthens the formal qualifications available to Portuguese employers and international companies operating in the country.
However, the report identifies a substantial generational divide. Among people aged 35 to 45, the proportion completing secondary education remains more than ten percentage points below the European Union average. The gap is even wider among workers approaching the end of their careers. Portugal therefore combines a highly educated younger population with older generations whose formal schooling was often interrupted by the economic and social conditions of earlier decades.
This contrast creates important challenges for the labor market. Companies may recruit highly qualified younger employees while relying on experienced workers with fewer formal credentials. Training systems must therefore recognize professional knowledge acquired outside universities while helping older workers adapt to technological and organizational changes. Educational progress cannot be measured only through new graduates if significant parts of the existing workforce remain excluded from continuous learning.
The socioeconomic background of students also continues to influence academic success. Young people from disadvantaged households face greater difficulty accessing educational opportunities and progressing through the system. Costs related to housing, transport, digital equipment and study materials can create barriers even when tuition is publicly supported. Family expectations and access to academic guidance may also affect whether students continue into higher education.
The report argues that reducing these inequalities is essential for building a fairer system. Higher national averages can conceal groups that remain at risk of falling behind. A country may produce more university graduates while still reproducing differences linked to income and geography. Educational expansion becomes fully effective only when a student’s future is not determined by the resources available at home.
Immigration is creating another major transformation inside Portuguese schools. Between 2014 and 2023, the number of foreign students enrolled in the public system increased by approximately 283 percent. By September 2023, about one in every seven public-school students held a foreign nationality. The change has made classrooms more culturally diverse while placing new demands on teachers, administrators and support services.
The concentration is especially visible in parts of the Algarve, the Lisbon metropolitan area and Setúbal. In some municipalities, immigrant students represent more than 30 percent of total enrollment. Brazilian students remain the largest group and account for almost half of the foreign school population. Schools are also receiving increasing numbers of children and adolescents from Asian and other European countries.
Language is one of the most immediate challenges. Many newly arrived students begin classes without sufficient command of Portuguese, making it harder to understand lessons, complete assignments and participate socially. Teachers must respond to different linguistic levels within the same classroom. Without specialized support, language difficulties can become incorrectly interpreted as limited academic ability.
Foreign students currently experience substantially higher repetition rates than Portuguese students. The study indicates that their risk of repeating a school year is between three and five times greater. At the secondary level, the repetition rate among foreign students reached 29 percent, compared with 8.3 percent across the student population. This difference suggests that access to school does not automatically produce equal educational outcomes.
The report recommends more targeted policies and support mechanisms adapted to the needs of diverse students. These could include intensive Portuguese-language instruction, additional teacher training and stronger coordination with immigrant families. Schools may also need psychologists, cultural mediators and specialized staff capable of identifying the causes of academic difficulty. A uniform response is unlikely to work across communities with different migration histories and social conditions.
Portugal’s educational progress nevertheless remains significant. A country once associated with limited schooling has developed one of Europe’s most qualified younger populations. The rise in higher education can strengthen productivity, research capacity and the ability to attract investment. It can also expand social mobility when qualifications lead to stable and appropriately paid employment.
The next challenge is ensuring that the economy can retain this talent. High qualification levels lose part of their national value when graduates face insecure work, wages below their skills or the need to emigrate. Portugal must connect educational achievement with professional opportunities capable of supporting independent adult lives. The success of universities ultimately depends on whether knowledge can be converted into economic and social development.
The Annual Education Review presents Portugal as both an achievement and a work in progress. Younger people are reaching levels of education that would have appeared exceptional a generation ago. At the same time, older workers, low-income students and many immigrant children remain exposed to disadvantage. The country’s next educational phase will be judged not only by how many degrees it produces, but by how widely their benefits are shared.
Education transforms a country when opportunity reaches every generation. / La educación transforma un país cuando la oportunidad alcanza a todas las generaciones.