The case examines the labour market in the Euroregion Norte – Galicia, located in the Northwest of the Iberian Peninsula. The case study was conducted by the Consortium leader, ÖIR, and by a national experts.

The Euroregion has a strong history of established cooperation, dating back to the 1970s when formal collaboration between Portugal and Spain began. This history has led to the development of several cross-border cooperation frameworks, including the Galicia-Northern Portugal Working Community, established in 1991. Collaboration between Galicia and Region Norte continuously evolved over the years and nowadays presents a formalised structure involving numerous public and private entities that collaborate in various areas. Nevertheless, it is still difficult to harmonise rules between the two regions. This is also due to the different levels of administrative autonomy in each of these regions. While the devolution of powers and competencies in Galicia is quite substantial, the Norte region, due to the Portuguese centralised political system, depends on the national government. Regarding the labour market, the Cross-border Employment Office of the EURES network, in collaboration with business associations, trade unions and public institutions of both regions, provides different support services to businesses and jobseekers and publishes studies and reports on the cross-border labour market. 

However, despite these efforts, cross-border labour market integration remains limited, with only around 3,000 people commuting between the two regions, 78% of whom travel from Galicia to the Region Norte. Galicia’s higher unemployment rates and Region Norte’s higher job availability, despite lower wages, continue to drive this trend.

A particularity of this cross-border region is the significant economic complementarities between Galicia and Region Norte. In Galicia, most cross-border workers are employed in sectors like transport, construction, and storage, while in the Region Norte, the industry sector is more dominant. This has fostered some cooperation between businesses across the border, particularly in manufacturing, transport, and the service sectors. However, challenges remain, especially in terms of harmonising administrative rules between the two countries, such as labour laws, taxation, and social security policies.

The case examines the labour market in the Euroregion Norte – Galicia, located in the Northwest of the Iberian Peninsula. The case study was conducted by the Consortium leader, ÖIR, and by a national experts.

The Euroregion has a strong history of established cooperation, dating back to the 1970s when formal collaboration between Portugal and Spain began. This history has led to the development of several cross-border cooperation frameworks, including the Galicia-Northern Portugal Working Community, established in 1991. Collaboration between Galicia and Region Norte continuously evolved over the years and nowadays presents a formalised structure involving numerous public and private entities that collaborate in various areas. Nevertheless, it is still difficult to harmonise rules between the two regions. This is also due to the different levels of administrative autonomy in each of these regions. While the devolution of powers and competencies in Galicia is quite substantial, the Norte region, due to the Portuguese centralised political system, depends on the national government. Regarding the labour market, the Cross-border Employment Office of the EURES network, in collaboration with business associations, trade unions and public institutions of both regions, provides different support services to businesses and jobseekers and publishes studies and reports on the cross-border labour market. 

However, despite these efforts, cross-border labour market integration remains limited, with only around 3,000 people commuting between the two regions, 78% of whom travel from Galicia to the Region Norte. Galicia’s higher unemployment rates and Region Norte’s higher job availability, despite lower wages, continue to drive this trend.

A particularity of this cross-border region is the significant economic complementarities between Galicia and Region Norte. In Galicia, most cross-border workers are employed in sectors like transport, construction, and storage, while in the Region Norte, the industry sector is more dominant. This has fostered some cooperation between businesses across the border, particularly in manufacturing, transport, and the service sectors. However, challenges remain, especially in terms of harmonising administrative rules between the two countries, such as labour laws, taxation, and social security policies.

The full-fledged case study report will be publicly available upon the official closure of the project, early 2025. In the meantime, should you have any comments or questions, please do not hesitate to contact us.