Andorra Cuts Work Permit Quota to 800 Amid Business Hiring Concerns

The Andorran Economic and Social Council (CES), chaired by Minister of the Presidency, Economy, Labour and Housing Conxita Marsol, issued a favourable opinion on Monday during an extraordinary session for a general quota of 800 new residence and work authorisations. This represents an 11.1% reduction, or 100 fewer places, compared to the initial quota approved last October.

The quota, which still requires final approval from the Council of Ministers, allocates 624 places for residents and 176 for cross-border workers. It can expand by up to 30% if needed and aims to match current economic and social requirements while ensuring sustainable growth and support for strategic sectors, in line with existing legal frameworks.

From this total, deductions apply for a February advance of 150 authorisations—64 of which have already been issued—and a separate contingent of 150 for professional athletes. The athlete permits break down as follows: 10 each for the 10 teams in Andorra's top football division, 20 for Futbol Club Andorra SAOE, 20 for Bàsquet Club Andorra SAOE, and 10 for other professionals. These will also subtract from the general quota.

Business leaders from the Andorran Business Confederation (CEA), led by president Gerard Cadena, voiced concerns over the cut, noting it comes amid strong hiring needs that could strain the labour market further. Sectors like tourism, hospitality, restaurants and construction face particular pressure, Cadena said, with companies struggling to recruit despite efforts to provide quality service. He highlighted that quotas have tightened progressively, making staffing harder.

The CEA called for flexibility, requesting guarantees of expansion if the quota depletes before the November winter allocation. Officials appeared receptive, and an understanding emerged that authorities would review and potentially increase it if exhausted early. Cadena expects the quota to open by May 1.

Unions, including the SEP under Sergi Esteves, raised related issues. Esteves questioned the labour impact of new commercial centres under construction, urging strategic linkage between business permits and immigration quotas to avoid disorder. He proposed sector-specific quotas based on market studies, targeting high-demand areas and aligning with long-term economic goals. The SEP also advocated easing non-EU worker requirements in specific cases, such as hospitality, to help firms retain staff, stabilise the labour market and curb population growth.

The minister reportedly responded that such matters would be addressed in two years' time. Esteves warned that without planning, these projects could consume up to 2,000 quota places in that period, reflecting a lack of foresight by the government.