The shortage of workforce on the Bulgarian labor market is one of the factors that negatively affect the development of production and economic growth in our country.
Increasingly, employers in the same industry compete for hiring workers. This trend, which has been deepening over the last few years, is common for all Member States of the European Union (EU). Competition in workforce employment exceeds national dimensions and is transferred to European and international level. The ways to overcome labor shortages are different and depend on the economic and social development of the individual countries.
Data about Bulgaria:
According to data from the National Statistical Institute (NSI) and the Ministry of Labor and Social Policy (MLSP), in our country there is a steady trend of increase of employment and decrease of unemployment. Eurostat data for the first quarter of 2018 show that the unemployment rate is 7% on average for the 28 EU Member States and the unemployment rate in Bulgaria is 5.7% according to the Employment Agency.
At the same time, there is an exceptionally high level of inactive people aged 15-64 in our country who, for various reasons, do not work. The short labor market analysis, published by MLSP for June 2018 shows that, according to NSI data, the number of inactive people is 1 337 300 and the number of discouraged people in the same period is 91 600. In practice, the Bulgarian economy is deprived of over 1 million and 400 thousand Bulgarian citizens of working age, who are neither employed, nor registered as unemployed.
The Bulgarian Industrial Association is seriously concerned about the data and the ever-deepening crisis and lack of workforce for the Bulgarian economy. In order for our country to be competitive and to have a real growth in production and raise the level of income, an active policy of attracting a labor force on the Bulgarian labor market is needed, targeting both the inactive and discouraged Bulgarian citizens, as well as for attracting cadres from third countries who, with their knowledge, professional experience and work skills, can successfully work in Bulgarian companies.
Over the last year, significant changes have been made to the Labor Migration and Labor Mobility Act, as well as to its implementing regulations. Legislative changes have led to reduction of the administrative and financial burden for employers when hiring third-country nationals, positive steps to address shortages of seasonal employment staff, especially in the hotel and restaurant sector. Agreements to regulate labor migration with the Republic of Armenia and the Republic of Moldova have also been signed.
In this regard, BIA has developed two papers on granting authorization to enter the labor market of third-country nationals in line with the Labor Migration and Labor Mobility Act and employment of third-country nationals after a one-time registration by the employer at the Employment Agency.
