Andorra Minister Proposes Higher Minimum Wages for Foreign Workers to Curb Shortages

Conxita Marsol, Andorra's minister for Presidency, Economy, Housing, Employment and Labour, has advocated raising minimum salaries for new foreign workers as a way to address labour shortages—particularly in hospitality—while limiting population growth and reducing reliance on work permits.

During Monday's inauguration of the upgraded Employment and Labour department offices in the Columnes building on Avinguda Tarragona in Andorra la Vella, Marsol highlighted 1,826 active job vacancies as of May, compared to just 244 registered unemployed individuals at the Employment Service. She described this gap, which has widened 75% since May 2022 when 1,323 vacancies faced 424 jobseekers, as a sign of economic strength with far more offers than demand. The figure has hovered above 1,000 in recent years, occasionally nearing 2,000. Hospitality firms had criticised the government's summer quota of 500 permits as inadequate.

The minister expressed shared concern with businesses, stressing the need to grow without excess. "Businesses must be able to operate, but we're talking added value, and we could control quotas by raising salaries," she said. New hires already earn above the €1,525.33 minimum, and officials are exploring further increases to make roles more attractive, alongside targeted quota reopenings, source-country recruitment and business consultations. Proposals are expected soon, balancing competitiveness with worker rights and social cohesion.

Unemployment remains low at around 70 registered individuals—near historic lows of 1.3% in 2025, down from the previous year—with many seekers aiming to improve their positions. Andorrans represent 51% of the unemployed despite comprising about 42% of the working-age population. Marsol noted stable complaints at 78 for 2025, plus 45-46 proactive checks, covering issues like safety but no major patterns like past cases. The department is prioritising vulnerable groups and compliance in origin-country hiring. "We know how to ensure the law is respected for those coming to live and work here," she added.

Head of Government Xavier Espot, with Territory and Urbanism Minister Raül Ferré, state secretaries and Labour director Laura Vilella, hailed the move from Boïgues in Escaldes-Engordany to this ground-floor site with natural light, Parc Central views, interview rooms and digital support. The 2025 report showed the Labour Inspection Service handling over 14,000 queries, 178 inspections, 870 CVs, more than 2,300 offers and 155 placements from 1,900 visits. "We now manage more job offers than demands—unlike before," Espot said, calling it people-centred administration.

Marsol described the relocation as a long-standing goal and updated on smooth Organyà economic zone talks with Catalonia and Occitania. Enhanced online tools and Immigration separation are on track for August or September.