Andorra faces labor shortages despite rising wages and strong economy

Andorra is facing a significant labor shortage despite its high standard of living and strong economic indicators. The principality, located between France and Spain, maintains a favorable tax environment with a sales tax of only 4.5 percent and a high GDP per capita of approximately 39,000 euros.

Recent data shows rising wages across all sectors. In May, the average monthly salary reached 2,760.46 euros, a 7.7 percent increase from the previous year. The financial sector remains the highest paying, with an average monthly salary of 4,972.10 euros, while the retail sector saw the largest growth at 14.5 percent.

To address the shortage, the government has had to adjust immigration quotas. Although the general quota was reduced to 800 permits this year, additional permits have been approved for deficit occupations. Critical needs exist in healthcare, education, elderly care, public transport, and tourism. For the 2026 summer season, specific temporary permits have been issued to address shortages of waiters, cooks, and hotel cleaning staff.