The shortage of qualified professionals entering the Bulgarian labor market has consistently ranked among the top three challenges for businesses over the past five years, and in recent years, it has climbed to the top two, following economic uncertainty. This was stated by Vasil Velev, Chairman of the Board of the Association of Industrial Capital in Bulgaria, in an interview with the Bulgarian National Radio. Velev was speaking ahead of a forum focused on aligning education with labor market demands, where alarming statistics was set to be presented.
According to Velev, since 2018, the number of vocational education graduates has dropped by a third, despite no significant decline in the birth rate. Secondary school graduates have decreased by 20% and primary school graduates by 15%. Compounding this issue is the declining quality of education, as highlighted by Bulgaria’s performance in PISA tests. The country has double the OECD average of underperforming students and three times fewer high achievers, with these results worsening over time.
Velev pointed out that the mismatch between the structure of vocational education and labor market needs exacerbated the problem. Fields such as economics, arts, tourism and services are oversaturated, while there is a shortage of graduates in technology, construction, and transport – areas in high demand. This disconnect continues at the university level, where a significant proportion of students pursue studies in economic, social, and legal sciences, rather than technical, natural, and mathematical disciplines, which are more aligned with labor market requirements.
The chairman stressed that over 40% of university graduates did not find jobs requiring higher education. He attributed this to the “money follows the student” funding model, which prioritized enrollment numbers over quality. With an oversupply of university places – two spots per secondary school graduate – many students gravitate toward easier programs, resulting in irrational demand, low educational standards, and reduced competition. Velev argued that this phenomenon often stemmed from students seeking a continuation of a carefree lifestyle rather than meaningful preparation for the labor market.
He also criticized the lack of selection criteria for university admissions, noting that technical disciplines, which were more in demand and yielded higher incomes, often admitted students with lower academic achievements. Despite this, these fields experience significantly lower unemployment rates.
The Association of Industrial Capital in Bulgaria is proposing measures to address these challenges, including revising the admission structure to better align with labor market needs, introducing a mandatory matriculation exam in mathematics and focusing on improving the quality of education. Velev emphasized that sustainable solutions required education reforms tailored to current and future employment trends.
The structural issues in the education system have worsened since 2020, Velev warned, with Bulgaria reversing some positive changes previously underway. The country’s universities maintain a capacity of 418,000 students, yet only 182,000 are enrolled, with approximately 125,000 graduating annually. Of these, just 65,000 secure positions requiring higher education. Velev called for significant reforms, noting that previous efforts were abandoned in favor of easier, short-term approaches.
For workers with secondary education, demand is highest in industries like construction, transport, and machinery operation, while for those with higher education, engineering and technical skills are most sought after. Meanwhile, there is an oversupply of graduates in social, economic and legal fields, which fail to meet current employment needs.
Beyond the educational sector, Velev expressed concern about the broader economic implications of misaligned spending. He criticized excessive and ineffective government expenditures, warning that temporary fiscal measures to plug budget gaps are unsustainable. Without corrective actions, Velev cautioned, the financial situation could lead to severe consequences in the near future. (Novinite)