Main characteristic features of the Andorran economy and recent economic development

LABOUR MARKET

The working population in Andorra in 2006 was 43,380 persons, which represents 72.8% of the total population aged between 15 and 64. This high level of employment –more than eight points higher than the European average– is the result of a sustained increase in employment since 1994, with an average annual growth of 4% over the past thirteen years.

The increase in the need for labour which has been higher than the growth in the population of working age (from the age of fourteen with certain restrictions and eighteen without restrictions) over the past number of years, has led to the arrival of many foreign workers, most of whom come from Portugal.

In terms of sectors, services is the most important with 79.3% of all employed people. The services sector is followed by construction (15.9%) with industry coming a very distant third (4.4%), while the primary sector represents an almost negligible 0.3% of all employment. Among the tertiary activities, the volume of the population employed in commerce stands out (33.3% of all workers in the services sector) as does the number of employees in activities directly related to tourism, such as hotels and catering (16.5%). The importance of employment in the Public Administration and in real estate and rental activities and business services –in the order of 12% in both cases– is also relevant, as are activities of a social nature (education, health and other social services), which together account for 13% of all workers in Andorra.

The high presence of tertiary activities in the economy, especially those linked to tourism, has led to the existence of flexible contract models and a high seasonability of employment.