More than half of the employers in the country will not be hiring new employees over the next six months, according to the seventh national survey of the Bulgarian Employment Confederation (BEC). Thirty-two percent of the 1 197 companies surveyed do not expect any changes in the number of employees, while 24% forecast hiring new staff. Another 20% plan to reduce their workforce, and 24% are uncertain whether they will expand or shrink their teams between October 2024 and March 2025. Thus, the net employment rate — the difference between employers planning to reduce the workforce and those forecasting an increase — is +4%, a decrease of 12 percentage points compared to the previous six-month period and a decline of 6 percentage points in comparison with the same period in 2023.

‘Bulgarian employers are going through extremely difficult times, and this explains their modest forecast of +4% — the lowest since the beginning of the study. It is undoubtedly influenced by unfavorable macroeconomic and geopolitical factors, but according to our observations, the main reason their development plans will ‘stall’ is the prolonged shortage of enough people and the lack of political stability in the country,’ commented BEC chairperson Nadia Vassileva.

Seven out of the twelve industries included in the report share weaker hiring forecasts for the next six months. Compared to the previous surveyed period, the sectors that see the largest decline are Information Technology (a drop of 5 percentage points), followed by Retail Trade, Finance&Insurance, Real Estate and Business Services and Hotels&Restaurants, where employers’ plans decrease by 3 percentage points.

‘Particularly concerning is the two-percentage point decline in the Manufacturing sector which employs over 500 000 people. The decrease means, on the one hand, that some employees will lose their jobs, and on the other, that companies are unable to find the necessary workers. This brings us back to square one — the lack of a stable government capable of taking adequate measures regarding the training of these workers, combined with the need to import labor from third countries,’ added Nadia Vassileva.

At the same time, employers in four sectors report stronger hiring plans compared to the previous survey period. The largest increase is registered in the Transport, Storage&Communication and Construction sectors where the net employment rate reaches +14% and +12%, respectively, followed by the Public&Social sector and Electricity, Gas&Water with a net employment rates of +7% and +3%. The hiring forecast of the employers in the Outsourcing sector decreases by 1 percentage point, reaching an employment rate of +12%. In the Mining sector, the employment rate remains unchanged at -1%, while in Agriculture, Forestry&Fishing it decreases by 2 percentage points.

In terms of individual regions, only Sofia and Rousse employers’ hiring plans register an increase for the next six months, reaching net employment rates of +74% and +2%, respectively. Compared to the previous survey period, the forecasts of Varna and Bourgas employers decrease by 3 and 6 percentage points, respectively, while the +11% net employment rate in Plovdiv remains unchanged.

About the Bulgarian Employment Confederation

The Bulgarian Employment Confederation is a non-profit organization that brings together the expertise of the leading HR services companies in Bulgaria, combines creativity, innovativeness, modern digital solutions, adaptability and knowledge of the latest global trends in the human resources field. The confederation’s key objective is to form a sustainable partnership with all industry companies in order to build a healthier work environment in Bulgaria. We are not afraid to ask questions and pinpoint the problems of the job market and the labor legislation. This is how we strive to solve them and help the adequate functioning of the labor market: www.bec-bg.com