The number of work permits issued by the Employment Agency for foreign workers continues to grow, with projections for this year reaching around 40,000, according to Nikolay Nikolov from the Bulgarian Association for People Management and the Bulgarian Confederation for Employment.
Foreign labor primarily comes from two regions, depending on the industry. One group arrives from former Soviet and Central Asian countries, attracted not only by comparatively low incomes back home but also by the absence of a language barrier. The other group hails from Nepal, India and Sri Lanka.
Bulgaria’s workforce is steadily shrinking, currently staying below 3 million people. Nikolov noted that there simply weren’t enough people available, adding that many inactive individuals on the labor market had other income sources and thus did not seek employment.
As the tourist season began, the most pressing demand for workers had been in the tourism, hotel and restaurant sectors, which faced a significant shortage. However, Nikolov emphasized that this was not a crisis but a challenge businesses had adapted to by better planning. Other sectors also struggling to find staff include warehousing, logistics and various manufacturing industries.
Nikolov highlighted a growing trend of rising wages at the lower end of the pay scale. Young entrants to the labor market tend to have high salary expectations, forcing employers to raise salaries in these lower brackets. Meanwhile, wages in the higher ranges remain relatively stagnant, creating a wage disparity.
The expert pointed out that rising costs across the board, including for human labor, were pushing prices higher. He predicts that until the end of the year, salaries in the lower wage zones will increase by at least 15%, a development that would also influence inflation.
Joining the eurozone is expected to further drive demands for higher pay from workers. While Bulgaria has a well-established culture of bonuses and benefits, Nikolov cautions that these are often the first expenses companies cut during economic downturns.
Looking ahead, he expressed that it might take another 10 to 15 years for Bulgaria’s living standards to approach the European average. (Novinite)