Bulgaria‘s Economy Faces Labor Shortage of 250,000
Bulgaria’s economy is in urgent need of over 250,000 skilled workers across various sectors, with both niche specialists and managerial positions proving hard to fill. As reported by the Bulgarian Chamber of Commerce (BCC), businesses are expecting to increase their labor costs to retain qualified workers.
Current high demand professions include construction and healthcare services. The shortage in these sectors is so significant that offered salaries have surpassed market averages. The average salary in construction has reached around BGN 3,000, while in healthcare it stands at approximately BGN 2,000, as per data from Money.bg.
Meanwhile, the rise in the minimum wage and increases in administrative remuneration are also boosting businesses’ labor costs. This is prompting employers to curb investment, hire fewer employees, and raise product prices.
"Bulgaria’s economy is entering a period of uncertainty, with growth projections for 2025 ranging between 1.8% and 2.9%," comments economist Krassen Stanchev, as cited by BNR. Despite the Bulgarian National Bank’s forecast of a 2.6% growth rate, experts express concerns about the actual implementation of the recently approved budget measures.
The labor market analysis reveals alarming trends. Despite a 17% increase in average wages due to labor shortages, job listings have decreased by 50%. This suggests a potential slowdown in wage growth in the near future.
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BCC: 60,000 Companies Plan to Hire New Staff
Despite these challenges, 60,000 companies in Bulgaria plan to recruit new employees this year. However, nearly 40,000 businesses are considering scaling back their operations, indicating a hesitation in long-term expansion plans.
According to an analysis by the Bulgarian Chamber of Commerce, businesses are looking for highly qualified, mid-level, and top-tier personnel. Seasonal workers are in demand in the agriculture and tourism sectors. Meanwhile, skilled workers are scarce in the trade and services sectors.
Businesses express frustration with the current process of importing workers from third countries, citing heavy bureaucracy and the lack of digitization and normative changes in the process.
"Only by hiring well-educated and qualified individuals can we improve our competitiveness against others," commented BCC Chair Dobri Mitrev, as quoted by BNR. "We should focus on specialized training that meets the needs of employers, rather than general education which provides a little knowledge about many things."
Source: Webnews.bg
