Page 96 - economic report 2021

Table 12.2
NUMBER OF EMPLOYEES IN THE SERVICES SECTOR (annual average)
% var. % total
2020 2021 21/20 2021

Commerce and motor vehicle repairs (etc.) 8,681 8,174 -5.8 25.4
Hotels & catering 4,327 3,640 -15.9 11.3
Transport, storage & communicat ons 1,272 1,164 -8.5 3.6
Financial system 1,758 1,765 0.4 5.5
Real estate & rental act vit es; business services 5,482 5,630 2.7 17.5
Public administrat on, defence & mandatory social security 4,521 4,675 3.4 14.6
Educat on 604 622 3.1 1.9
Health & veterinary act vit es, social services 2,247 2,405 7.1 7.5
Other social act vit es & community services; personal services 2,900 2,765 -4.6 8.6
Households employing domest c staf 1,076 1,071 -0.5 3.3
Extraterritorial bodies 13 12 -5.3 0.0
Domest c work for the community 200 196 -1.8 0.6
Total 33,079 32,118 -2.9 100.0

Source: CASS (Andorran Social Security System) / Department of Stat st cs.

in public administration, and 11% in hotels and catering. Overall, these four branches account
for about 70% of total employees in the services sector. In 2021, the total number of employees
in some branches shrank but increased in others. Among the former is notably the reduction in
hotels and catering (-16%), added to the fall in 2020 (-15%). Employment also fell, for the second
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consecutive year, in commerce, in transport, storage and communications, and in the sector of
social activities and community services, activities which suffered heavily from the effects of
COVID-19. In contrast, employment basically increased in the branches of health activities and
social services (7.1%), public administration (3.4%), education (3.1%) and real estate activities and
business services (2.7%).

In 2021, the monthly wages of the whole The trend in wages by subsectors
services sector increased 1.3% to reach an is very similar.
average of €2,192, a moderate increase that is
The Andorran economy: developments in the main sectors | XII. Services
added to the increases of the previous three
years. The trend is very similar by subsector. The average wage increased more than 2% in real
estate and business services, in the transport and communications sector, and in health and
veterinary services; whereas it decreased 5.9% in social activities and community services (which
include recreational, sports and cultural activities), greatly affected by the COVID-19 crisis. In the
other branches, the variations were insignificant, whether upward or downward.

1. Commerce

Commerce is one of the pillars of the Andorran economy, despite losing ground against other
sectors in recent years, such as real estate and business services. The commercial sector
represents 16.3% of GVA (2020) and 21.7% of employment (2021) - less than in 2005, when it
was 26.7% of the labour market. This structural change is due to the economic crisis of 2008 and
the transformation of consumption patterns that affects traditional commerce.

The retail sector has been dealing with a transformation of its business model for many years,
due to a structural change in the behaviour of consumers who, with the same budget, value the