Merchants warn that immigration quotas are insufficient to cover new business openings

Business associations are warning that the current immigration quotas are not sufficient to meet the staffing needs created by new business openings. 

The sector believes there is a lack of coordination between the Government’s policies, which are responsible for setting worker quotas, and those of local councils, which authorize new commercial activities and establishments.

The situation is particularly difficult in sectors such as hospitality, where business owners say the shortage of workers has increased competition to recruit staff. Some establishments are already offering better conditions to employees working for other businesses in an effort to strengthen their teams.

Cristina Cerqueda, president of the Association of Merchants of Andorra la Vella’s Historic Centre, explains that over the past year they have detected several cases of restaurants directly attempting to recruit waiters and other employees from competing establishments.

“It is true that over the past year we have been hearing about cases of people going to restaurants, talking to employees and waiters, trying to win them over, and knowing that they are working for other restaurateurs,” Cerqueda says.

The Association of Merchants of the Central Axis has also warned about the growing competition for workers. Its president, Montse Rodríguez, says that some establishments are making more aggressive offers and directly recruiting employees from other businesses.

Merchants call for greater coordination

The sector believes that this situation highlights the need for the Government and local councils to better coordinate their policies. Merchants question whether new commercial openings should be authorized while the quotas available for recruiting foreign workers remain limited.

“It makes no sense for the local council to authorize new commercial openings when the immigration quota is insufficient,” Rodríguez says.

The associations believe the situation could become even more complicated with the new commercial openings planned in Andorra. Each new establishment creates an additional demand for workers in a market that is already struggling to fill certain positions.

This pressure is leading to greater competition between businesses to retain their employees and prevent them from moving to other establishments offering better conditions.

More pressure on small businesses

Merchants are also concerned about the upcoming opening of large retail stores and shopping centres outside the main urban commercial areas. In this case, their concern is not only about the availability of workers, but also about the impact these new developments could have on small businesses.

Cerqueda says some establishments are worried that the opening of large shopping centres on the outskirts could change consumer habits and encourage people to travel by car.

“They are concerned about the fact that new large shopping centres are opening further out, because people will take their cars and go there instead of going to the more central areas,” she says.

For merchants, the problem therefore combines several factors: limited immigration quotas, difficulties in finding staff, increased competition between businesses and the arrival of new commercial operators.

Bureaucracy remains another obstacle

In addition to difficulties in finding workers, business associations point to the bureaucratic burden involved in opening new businesses. Merchants argue that administrative procedures can make it difficult for vacant premises to be quickly taken over by new businesses.

The sector is therefore calling for simpler procedures and greater coordination between the different administrations to facilitate the continuation of commercial activity.