Andorran Family Business Association Warns of Staff Shortages from Depleted Immigration Quotas

The Andorran Family Business Association (EFA) has voiced significant concern over staff shortages caused by depleted immigration quotas, particularly impacting traditional economic sectors, while urging firms to adapt through diversification and strong governance.

During a Monday press conference, EFA president Daniel Aristot described the situation as a "very important problem," noting that exhausted seasonal quotas have severely limited hiring of non-resident workers. "We are all in agreement that there is a very important problem," he said, emphasizing that traditional production models rely heavily on foreign labour, unlike emerging sectors that require fewer workers. Aristot stressed that no business can thrive without adequate staffing and confirmed the association's alignment with the Andorran Business Confederation (CEA), which is leading negotiations with the government on hiring demands.

The remarks came shortly after the government approved an extraordinary advance of 250 work and residence permits, plus frontier worker authorizations, to address shortages. Officials noted that 890 permits from earlier decrees this year had already been requested, exhausting available quotas including a prior exceptional increase. These new permits will be deducted from the autumn batch, a measure Aristot acknowledged but which members view as inadequate for sustained needs.

EFA technical secretary Joan Tomàs reiterated that labour market and quota issues fall under the CEA's purview, as it channels sectoral requests to the executive. Amid these challenges, the association presented its 27th Family Business Cycle, set for Thursday, 2 July, at the Art Hotel. Titled “The Art of Governing the Family Business: Diversifying Operations and Sound Governance,” the event aims to equip younger generations with tools for adaptation.

Aristot highlighted the need for constant evolution given the longevity of family firms, pointing to examples like Lego's expansion from wooden toys to video games and films. He noted that past generations focused on excelling in one area, but survival now demands broadening product lines and exploring new domestic and international sectors amid technological, energy, and economic shifts. EFA director Joan Tomàs warned of changing global rules and key decision-making challenges.

Strong governance is essential for smooth generational handovers and avoiding early succession pitfalls, officials added. Family businesses remain keen on new opportunities, though growth hinges on resolving workforce constraints.

Speakers include Manuel Bermejo, president of The Family Advisory Board and IE Business School professor; Manuel Huerta, CEO of Horizont Family Company; economist Sergio Rodríguez; Marc López, vice-president of the College of Jewellers, Goldsmiths, Watchmakers and Gemmologists of Catalonia; and Josep Batallé, delegate councillor of Grup Batallé. They will share insights on diversification, entrepreneurship, and governance.