Bulgaria Faces Labor Force Decline of Over 400,000 in Next Decade

Bulgaria is projected to experience a significant decrease in its labor force over the next decade, with estimates suggesting a reduction of more than 400,000 individuals. This decline is occurring amid rising labor costs, where Bulgaria ranks second in the European Union. According to Eurostat data from the second quarter of 2024, Bulgaria saw a 15.4% increase in hourly wages, while Croatia reported the highest rise at 17.6%, and Romania followed closely with 15%.

Lachezar Bogdanov, Chief Economist at the Institute for Market Economy, commented on the labor market dynamics, stating that the common labor market across Europe is functioning effectively. He noted that Eastern European countries, excluding Slovenia, have shown rapid growth rates that are twice the EU average. Over the past six years, wages in Bulgaria have doubled, yet this increase stems from a low initial base, which he described as a persistent issue.