Andorra Economists Predict Wage Rises Amid Housing Shortage and Labour Crunch
Businesses in Andorra face worker shortages due to housing issues slowing immigration, prompting salary hikes to attract staff, as economists warn.
Key Points
- Housing shortage slows immigration, making worker recruitment difficult for businesses.
- Economists predict upward wage pressure to balance labour supply and demand.
- Calls to prioritise skilled hires who command higher salaries.
- Caution against growing to 100,000 residents due to strained infrastructure.
Economists in Andorra predict salary increases as businesses struggle to attract workers amid a housing shortage that has slowed immigration.
In an interview on Ràdio Nacional, Antoni Bisbal, dean of the College of Economists, highlighted how living costs in the Principat have risen sharply in recent years. With the new year underway, he urged a review of whether residents' purchasing power remains adequate to cover expenses.
Bisbal forecast inflationary pressure on wages, driving them upward to sustain essential services. Fewer foreign workers are arriving due to accommodation challenges, he noted, forcing companies to compete more aggressively for labour. Business owners have reported growing difficulties in recruiting staff, prompting calls to prioritise skilled hires—who naturally command higher pay.
"The market must balance supply and demand not just for goods and services, but also through wages," Bisbal said.
He also cautioned against unchecked population growth, arguing Andorra cannot sustainably reach 100,000 residents as current infrastructure is already stretched. Instead, he advocated rethinking the national model to emphasise quality over quantity.
Original Sources
This article was aggregated from the following Catalan-language sources: