Andorra Unemployment Hits Record Low of 1.3% in 2025 Amid Strong Employment Gains

Andorra's unemployment rate fell to a record low of 1.3% in 2025, with 720 people aged 15 and over out of work, according to the Department of Statistics' labour force survey. The figure reflects a 0.2-point decline from 2024, highlighting labour market strength even as long-term joblessness rose.

The employment rate for those aged 15 and over stood at 71.2%, encompassing 55,958 workers—a 0.1-point drop from the prior year. The active population totalled 56,678, or 72.1% of that group. Salaried employees accounted for 81.9%, self-employed workers 18.1%, part-time roles 6%, and temporary contracts 11.5%. Average gross monthly earnings for primary jobs increased 1.8% to €2,817.70, while the median rose 6.5% to €2,408.40. Men's median pay reached €2,604.20, women's €2,162.60, reducing the gender gap slightly. Top medians appeared in finance, real estate, professional and technical fields (€2,555) and management (€4,551.80).

Long-term unemployment—lasting over a year—affected 16.7% of the total, or 112 individuals, up three points from 2024. Youth unemployment (ages 15-24) climbed to 6.9%. Just 24.1% of the unemployed were registered with the employment service, and 13.7% received benefits. Labour underutilisation impacted 1.4% of the workforce, or 764 people. Among jobseekers, 88.2% had previous experience, with 32.6% citing layoffs or business closures due to economic factors. Pluri-employment rose to 7.2% of workers, telecommuting held at 12%, and atypical hours affected 41.8%. Andorra's 82% employment rate for ages 15-64 outpaced Spain (67%), France (69.4%) and the EU (71%).

These trends coincided with robust migration. In 2025, Andorra recorded 4,727 inflows from abroad, up 3% from 4,591 in 2024, against 2,898 outflows—the highest exits on record, rising 6.7%—for a net gain of 1,829, down 2.4% from the previous year. "Other nationalities" dominated at 46.6% (around 2,203), ahead of Spaniards at 1,642 (34.7%, up 9.3%). French arrivals surged 33.1% to 470, Portuguese 39.7% to 204. Andorran returns fell 7.5% to 209. New residents aged 20-39 prevailed, with 1,391 in the 30-39 group and 1,137 aged 20-29; balances turned negative from age 70. Most held residence-and-work permits (61.5%). Andorra la Vella led arrivals at 1,060, followed by Escaldes-Engordany (835) and Encamp (728). Over five years, non-Andorran residents grew by 10,391, led by "other nationalities" (three-quarters of the gain), including Argentinians (3,331), Colombians (1,713) and Peruvians (nearly 1,000).

Housing pressures exacerbated outflows, driving mid-income workers to nearby Catalan areas. La Seu d'Urgell grew 23.9% from 12,252 in 2021 to 13,009 in 2025, adding 757 residents; foreign population rose 44.8% to 28%, mainly ages 45-64 (29.3%) and 30-44 (23.2%), often Andorra-linked. Single-person households hit 38.8%, home sales climbed 25.2% to 159 over three years. Non-EU Americans there jumped 133% from 601 in early 2022 to 1,401 by late 2025.

Montferrer i Castellbò rose 7.4% from 1,081 to 1,161, international residents up 43.1% since 2023, sales 31.6% higher. Puigcerdà exceeded 10,000, up 14.1% since 2021, with foreigners at 39% and youth (15-29) at 22.4%; sales fell 4.5%. Organyà gained 12% from 766 to 853, foreigners up 65%—mostly South American—sales soaring 160% last year on low volume.

Statistics confirm a solid market with high participation and low unemployment, though housing strains, record exits, long-term joblessness and youth challenges persist.