Madeira is experiencing a significant shortage of workers in the restaurant and hotel sectors, evident from establishments displaying 'staff wanted' signs. Despite the region's officially low unemployment rate, these sectors struggle to fill positions.
Contributing factors to this scarcity include long hours, split shifts, rotating days off, and often low wages. Many local workers seek employment offering greater stability and a better work-life balance. The high cost of housing in Funchal exacerbates the issue, making it difficult for employees to live near their jobs on offered salaries.
In response, businesses are increasingly turning to hiring immigrants, particularly from Asian countries like Nepal, Bangladesh, and India. These workers accept the conditions as a pathway into the European job market. Employers argue that without this labor, many businesses would have to close or reduce operations. Critics, however, suggest that the availability of workers willing to accept lower wages can perpetuate wage stagnation in the sector.