Andorra Economists and Unions Push Salary Hikes Amid Labour Shortages

Economists and union leaders in Andorra continue to advocate for salary increases to address labour shortages driven by soaring housing costs and reduced immigration from Europe.

Antoni Bisbal, dean of the College of Economists, highlighted the Principat's rising living expenses during an Ràdio Nacional interview. With the new year underway, he called for an assessment of whether residents' purchasing power meets basic needs. Bisbal predicted inflationary pressure on wages as fewer foreign workers arrive due to accommodation shortages, compelling companies to hire skilled personnel at premium rates. Business owners have reported mounting recruitment challenges, he added. "Supply and demand must balance not only through goods and services, but also through wages and salaries," Bisbal stated. He argued that Andorra's infrastructure cannot support 100,000 residents and advocated shifting toward a quality-focused national model over rapid population growth.

Gabriel Ubach, secretary general of the Unió Sindical d'Andorra (USdA), echoed these concerns in separate Ràdio Nacional appearances this week, renewing demands to lift the minimum wage to €2,500. He pointed to real estate speculation driving rents to €1,500-€2,000 monthly, levels unaffordable for many. Without raises, Ubach warned, all wages would gravitate toward the minimum—the only one regularly adjusted—leading to widespread departures. He accused the head of government of prioritising personal business interests, forecasting "total disaster," and asserted that major firms could absorb increases given their high profits.

In a Tuesday Ràdio Nacional slot, Ubach named specific companies—Grandvalira, Pyrénées, and Cierco group entities—as capable of boosting worker pay by €300-€400 without strain.

On *Avui serà un bon dia*, Ubach decried Andorra's shifting labour model, which he said exploits South American workers sending remittances home. Spaniards and French nationals now deem local jobs unviable, he explained, prompting firms to recruit from Latin America where modest Andorran earnings still support families abroad. Ubach questioned the endpoint: "Will we turn to African workers arriving by boat in Spain?" He faulted business owners for focusing on profits at the expense of retaining national and resident employees.