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Bulgaria suffers from labor shortage

Date: 30.07.2008

The latest analysis of the Oxford Business Group concludes that Bulgaria suffers from severe labor shortage, which is caused by the fact that more and more Bulgarians take up better paying jobs abroad.

The British consulting group points out that one unemployed person in Bulgaria could choose between ten different openings.

It also stresses that the unemployment in the capital Sofia was close to zero, and that the total rate for the country was 6%, which was one of the lowest in Europe.

According to the Bulgarian Labor Minister Maslarova, this level was close to the sanitary minimum, and the consequences from the further decrease of unemployment could lead to a growth of inflation, and a slowing economic growth.

The Oxford Business Group cites data of the Bulgarian National Statistical Institute, which found that 17,6% of the companies stated they were short of workers. The data also shows the monthly salaries in Bulgaria grew 20% in 2007.

The analysis points out that despite Bulgaria's relatively cheap labor within the EU, many employees in certain sectors such as IT, telecommunications, and finance receive excessively high remunerations.

The consulting group recommends that the Bulgarian government reform the education system immediately in order to provide students with new skill suitable for the rapidly changing labor market.

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