An improvement compared to the previous half-year, but also a significant deterioration compared to two years ago – this is what the labor market in Bulgaria will look like in the period April – September, according to the new survey of the Bulgarian Employment Confederation (BKZ), in which 1189 accredited companies took part.
- 31% of respondents predict an increase in their teams;
- 36% will maintain workforce size;
- 15% will reduce it;
- 18% cannot judge.
The net employment rate – the difference between hirers and layoffs – was +16%. This is an increase of 6 percent compared to the previous half-year, but compared to the same period of 2022, it is 24% less, BKZ notes.
Only one region in Bulgaria surpasses the EU employment level target for 2030.
Where in the EU is employment the highest and where – the lowest
Perhaps unsurprisingly given the upcoming tourist season, the sectors with the greatest growth in optimistic employers are “Hospitality and Restaurant” (up 7% or +11%) and “Wholesale and Retail Trade” (up 5 % more or +16%).
There is also an improvement, albeit less, in the IT and outsourcing spheres – those hiring are 24% and 13% more than layoffs, respectively.
Which type of tourism in our country has the highest hotel occupancy rate
However, support from the state is also necessary
The net employment rate in the “Financial and insurance activities, real estate and business services” sector remains at +9%, and a decrease in enthusiasm is visible in all other sectors monitored by BKZ:
- “Production”;
- “Transport, storage and communications”;
- “Construction”;
- “Public and social sector”;
- “Electricity, gas and water”;
- “Agriculture, forestry and fisheries”;
- “Mining industry”.
In the public and social sector, the lead of those hiring over layoffs is melting by as much as 6%, and the mining industry is now dominated by companies that expect to part with their employees.
From a regional point of view, in Burgas the employment rate will grow the most in the next 6 months – by 4% to +12%. Plovdiv and Varna are further behind with +11% and +10% respectively.
In Sofia, hiring companies will be 66% more than layoffs, and Ruse is the only region in the country where those planning to increase their workforce are decreasing – they are now only 1% more than those who will release employees.
Lack of personnel – problem #1
“The main problem faced by employers in the country is the painful lack of people. We are melting at the rate of ten people per hour, and in a few years nearly 30% of the population will retire. The consequences of the chronic head-on collision of business with the shortage of personnel will continue to be felt not only during the upcoming summer season, but at least until the end of September, if the 17-point procedure for importing personnel is not facilitated and the unemployed and often neglected social groups are not permanently integrated into the labor market,” commented the president of BKZ Nadia Vasileva.
