German Report Says Employers in Bulgaria Go out of Their Way to Keep Skilled Staff

Jerusalem, 14 September, 2022 (TPS-IL) -- BERLIN, 14.09.2022 (BTA)
A German report says that Bulgaria has the lowest labor costs in the European Union, but employers operating in the country need to go out of their way to keep their skilled staff. The report, published by the German economic development agency Germany Trade & Invest (GTAI), is titled “Labour and Wage Costs: Bulgaria 2022”, the German-Bulgarian Chamber of Industry and Commerce said on Wednesday.

The analysis shows that, although the Bulgarian labor market recovered after the coronavirus crisis, some employers are still grappling with structural deficiencies. According to the country’s Employment Agency, demand for labor increased by 13% in the first quarter of 2022 compared with the first quarter of 2021. Demand for labor is particularly high in the services sector. Competition over hiring skilled employees became even stronger in early 2022. This helps to keep unemployment down.

Skilled staff is most in demand in wholesale and retail trade, logistics and transport, the restaurant business, and information and communication technology. Most employers in the manufacturing industries intend to preserve their staff size or even expand it somewhat. The Employment Agency reports that the largest number of job vacancies are in textile and leather, mechanical engineering, and metalworking.

Labor costs in Bulgaria average EUR 7 per hour. The employment rate at the end of 2021 was 68.1%, which was higher by 3.9 percentage points compared with the end of 2020, according to National Statistical Institute data cited by Eurostat.

Due to the high demand for workers, some companies raise wages. About 65% of employees in Bulgaria work in the services sector and 30% in industry. Labor costs in the country may be low, but still, they are growing, the report says.

The services sector registered the highest increase in labor costs, by 14.4% in the first quarter of 2022 compared with the first quarter of 2021. In industry, they increased by 11.8%, and in construction, by 10.7%.