The Bulgarian economy faces a significant workforce shortage, with over 250,000 vacancies across various sectors. The most acute deficits are found in construction and healthcare, where there is a lack of specialized professionals and managerial staff. As a result, businesses are bracing for rising labor costs as they compete to retain qualified workers.

Companies are particularly in need of highly skilled, mid-level, and senior personnel, with agriculture and tourism requiring seasonal labor. Additionally, there is a growing shortage of workers in trade and services. Employers have expressed concerns about the bureaucratic hurdles and lack of digitalization in the process of importing workers from third countries, which further complicates the issue.

In the face of these challenges, businesses are taking matters into their own hands, investing in workforce training. According to a report by the employment agency, 26% of companies are willing to train employees on the job, though nearly two-thirds of them expect workers to come to them already trained.

Dobri Mitrev, Chairman of the Bulgarian Industrial Association, emphasized the importance of specialized training to improve the country's competitiveness. He noted that focusing on practical training tailored to employer needs is crucial, rather than general education that may not meet the specific demands of the job market.

Rising labor costs, spurred by increased minimum wages and growing public sector salaries, are putting additional pressure on businesses. Many employers are limiting investments and hiring, and some are raising prices to manage the higher expenses.

This year, only around 60,000 businesses plan to hire staff, while nearly 40,000 are preparing to scale back operations due to the challenging economic climate.

Sources:

• Bulgarian National Radio (BNR)
• BGNES
• NSI