The labour market in Bulgaria is facing a significant and worsening challenge related to labour shortages, which will become increasingly evident in the coming years. The primary causes include negative population growth, an ageing population, and emigration in pursuit of better education, employment, and career opportunities within the European Union (a trend that has been apparent for decades). These factors not only reduce the size of the working-age population but also pose substantial challenges for the country’s labour market.
Over the past 15 years, the structure of the labour market has undergone major transformations. While employers previously dominated the market and had a surplus of qualified candidates to choose from, today the situation is entirely different. The market has shifted from being employer-driven to employee-driven. Finding qualified staff is increasingly difficult, with shortages at all levels—from managerial and specialized roles to low-skilled positions. Recruiting administrative staff is comparatively easier, since desk jobs with fixed working hours remain preferable. Whereas employers in 2010 could receive dozens of applications per position, today they may receive only two or three, often with only one candidate partially meeting the job requirements. This shift has intensified competition for talent, with employees opting for positions that offer the best combination of salary, working conditions, and working hours. Employers are therefore compelled to adapt their strategies by offering better conditions, investing in training, and implementing innovative approaches to attract and retain talent.
Filling low-skilled positions proves to be particularly challenging, especially in Sofia, where the low unemployment rate and high competition among employers complicate recruitment efforts, despite competitive wages and benefits. A major contributing factor is the reluctance to engage in physically demanding jobs under unfavorable conditions. The new generation of workers prioritizes work-life balance and prefers flexible working conditions. Many decline job offers that do not meet their expectations while maintaining high demands for salaries and benefits, thus forcing employers to be more flexible and creative in their offerings.
The education system is also failing to align with market needs, inadequately preparing workers for key sectors such as energy, pharmaceuticals, and industry. Graduates often lack the necessary knowledge and skills, necessitating additional investment from employers. Furthermore, there is no long-term strategy to address future skills shortages. Despite this, 43% of the companies in the country hired employees in the past year, primarily for medium-skilled positions. Large companies with more than 50 employees were the most active recruiters, while small firms faced greater constraints. The highest hiring rates were recorded in construction (54%), followed by trade, transportation, the HoReCa sector (47%), and the industry sector (44%).
Currently, 18% of the companies report experiencing staff shortages, mainly for mid-skilled positions (63%). Medium and large enterprises are the most affected (27%), followed by small enterprises (17%) and micro-enterprises (11%). Labour shortages are particularly pronounced in industry, construction, trade, transport and the HoReCa sector, with low-skilled positions accounting for 28.6% of the demand. The demographic crisis and workforce shortages have made hiring foreign workers “inevitable”. The tourism sector has seen the greatest progress in this area, with foreign nationals accounting for over 30% of the workforce in some companies. Other sectors relying heavily on foreign labour include tourism, construction, transport, and trade, whereas in the pharmaceutical sector language barriers and the need for specialized expertise make this approach non-applicable.
For years, the Bulgarian labour market has faced a shortage of both highly skilled professionals and workers with varying levels of training. Data of the Employment Agency shows that 261,926 new workers and specialists across different occupations will be needed in the next 12 months, representing approximately 9.3% of the current workforce. The most severe shortages are seen in industry, where 68,249 workers will be required (26.1% of total demand). Significant demand is also anticipated in trade, transport, HoReCa (55,308 workers or 21.1%), government, education, healthcare and social services (48,710 workers or 18.6%). The highest demand for workers is projected in Sofia (47,229 workers or 18% of total demand), followed by Varna (30,000 workers or 11.1%) and Plovdiv (23,000 workers or 8.9%). A key challenge for employers is the lack of sufficiently qualified candidates, with 43% citing inadequate education and skills as the primary hiring obstacle. At the same time, demand for unskilled workers continues to grow, with an estimated need for 50,000 in the coming year. One potential solution for labour shortages is the import of workforce from third countries. Progress has been made in this area, with legislative improvements from last year facilitating the hiring of foreign workers.
The most in-demand jobs are in personal services, including chefs, waiters, bartenders, hairdressers, beauticians, caregivers, and animators, with approximately 19,000 vacancies. At the same time, there is a continued high demand for fixed plant and machinery operators, with nearly 15,000 job openings. Mining, the processing industry, construction, and transport sectors collectively account for around 12,000 vacancies. There is also significant demand for sales personnel, with 11,415 positions available in both large retail chains and small shops.
Vacancies for waste collection and similar roles are nearing 13,000, while caregiving positions, including carers and kindergarten support staff amount to nearly 8,000. Furthermore, there are approximately 7,000 openings for drivers of motor vehicles and mobile equipment, along with a substantial demand for metalworkers, machine builders, and craftsmen.
Meanwhile, 43% of employers cite a lack of relevant education and skills as a major obstacle to recruitment. At the same time, demand for unskilled workers in various sectors continues to rise, with an estimated 50,000 needed in the coming year. One potential solution to this labour shortage is the import of workforce from third countries. Progress has been made in this area, with legislative improvements in 2023 facilitating the hiring process for foreign staff.
Labour migration remains a controversial issue in the Bulgarian labour market. While some view it as an opportunity to expand the workforce, others see it as a challenge due to bureaucratic hurdles and integration difficulties. Among entrepreneurs facing staff shortages, 52% perceive migration as beneficial, whereas micro-enterprises and farmers tend to view it negatively. Employer attitudes toward immigration vary, with 29% expressing high tolerance and 26% showing zero tolerance. Overall, 57% support the import of foreign workers, particularly large companies and industries with high demand for low-skilled labour. Medium and large enterprises (68%) are more open to foreign hires compared to micro-firms, with industry (65%) and construction (68%) demonstrating the highest preference for foreign labour. Conversely, the agricultural sector remains more resistant.
Employing foreign workers offers several advantages, including a larger candidate pool and increased motivation for work, combined with absence of any claims to the positions and ensuing disciplinary effect on local staff due to the competition. On the other hand, the language barrier remains a significant challenge, prompting companies to implement various strategies, such as offering language courses and prioritizing candidates with basic language skills.
Additional obstacles include bureaucratic delays, high costs and reliance on intermediaries, making the recruitment process lengthy and complex, typically taking 8-10 months. The process follows these steps: (Note: the steps below do not apply to third-country nationals employed under labour migration agreements, who do not require a permit)
- The company selects an employment intermediary to carry out the intermediary activity abroad;
- The country(ies) of work is selected and the intermediary prepares an offer. The company accepts it and a contract is signed;
- Together they make the initial selection of the staff. They conduct an interview and then make the final selection of the staff;
- The company prepares the employment contracts for the selected candidates, and the intermediary assists the candidates in signing them for the respective positions;
- The intermediary submits the documents to the Migration Directorate for verification and issuance of a work permit;
- The Migration Directorate performs checks with the SANS, the Employment Agency, the Labour Inspectorate and the NRA, and issues the relevant permit;
- With the work permit, the applicant goes to the consulate and applies for a visa;
- Applicants arrive at the consulate for an interview on a specified date, and after successfully passing it, they receive a visa with which they will be able to enter Bulgaria;
- Once the applicants arrive in Bulgaria, the intermediary starts the procedure for obtaining a single residence permit;
- The intermediary is obliged to assist employees with the single permit, opening of bank accounts and issuing of other necessary documents to finalize job placement.
Administrative barriers include slow document processing, understaffed consulates, and inconsistent procedures. Renewing visas for long-term employees presents additional difficulties. Financial and organizational risks include costs of sending back unfit applicants and the need for repeated hiring, often in the local market, due to long processing times.
Labour migration agreements can mitigate these challenges by eliminating intermediaries and ensuring a streamlined legal process directly managed by the employment agencies in both countries. Such agreements also provide safeguards for assistance in cases of fraud.
The choice of target countries for labour migration requires careful consideration of key criteria: a large population for potential sending of staff; a lower standard of living compared to Bulgaria; lack of free access to the EU and an interest in cooperation on the part of the country. Possible partners include Uzbekistan, Vietnam, Sri Lanka, India, Kyrgyzstan, Nepal and Indonesia. The experience of the war in Ukraine has shown that Bulgarian companies can provide employment, but the difficulties of long-term retention of foreign staff require strengthening the country’s integration capacity. When integrating foreign nationals into the Bulgarian labour market, employers take measures such as language courses and onboarding, including learning specific terminology. Additional support is provided for administrative issues, accommodation and day-to-day organization. Some companies cover the costs of transport, rent, utilities and initial needs such as furniture and kitchen supplies. All these efforts are aimed at successful adaptation to the new environment and retention of the newly recruited employees.
It is common in the Bulgarian labour market for employers to declare equal pay for both Bulgarian and foreign workers. However, some employers believe that foreign workers should receive lower wages due to the additional costs associated with their residence, which are covered by the employer. This trend is more prevalent among micro-enterprises and companies with lower tolerance towards immigrants. Discriminatory attitudes are also evident regarding the rights and privileges of foreign workers, with many employers believing that such privileges should be restricted due to the workers’ temporary residency status.
The ensuring of living conditions and integration of foreign workers requires significant efforts from human resources departments. Employers express concerns about the ability of new employees to adapt and perform their duties, as well as about interaction with other workers in the company. The language barrier remains a key issue, especially for low-skilled positions, but employers have found ways to overcome this challenge through Bulgarian language courses and other measures to deal with communication difficulties.