Bulgaria’s Labor Market Is Changing. Is Business Ready?

The labor shortage in Bulgaria is no longer a forecast—it is a reality that businesses face on a daily basis. Despite employers’ active efforts, the labor market continues to “empty out,” while demand for workers is growing faster than the available supply.

Data from the Employment Agency clearly illustrates this trend. In 2021, just over 10,000 third-country nationals were employed in Bulgaria. Only three years later, in 2024, their number reached approximately 36,000. In the first six months of 2025 alone, 27,109 foreign citizens were granted access to the Bulgarian labor market—almost as many as during the entire previous year.

Despite this growth, the workforce deficit continues to deepen. While businesses needed around 205,000 employees in 2022, by the end of 2024 the number of unfilled positions had risen to 262,000, representing an increase of more than 25% in a very short period of time.

The domestic labor reserve is often cited as a potential solution. Official data shows that Bulgaria has over 1 million economically inactive individuals. In reality, however, only about 85,000 of them express a willingness to start working. For many companies, relying solely on the local labor market is therefore practically impossible—especially in sectors such as tourism, manufacturing, construction, and services.

Against this backdrop, an increasing number of employers are finding a sustainable solution in hiring workers from third countries. Employees from Uzbekistan, the Philippines, Nepal, and India are already part of the Bulgarian economy, occupying both operational and highly qualified positions.

There is also a widespread misconception that hiring third-country nationals is a “cheaper” option. Bulgarian legislation requires employers to provide equal working conditions and remuneration, as well as to cover additional costs such as transportation and accommodation. As noted by the Bulgarian Hotel Association, if the domestic labor market had sufficient workforce, businesses would prefer to hire locally. Under the current shortage, however, well-regulated and strategically managed labor migration is becoming a necessity.

A positive signal for employers is the upcoming amendments to the Labour Migration and Labour Mobility Act. These changes envisage increased quotas for hiring third-country nationals, clearer regulation of recruitment intermediaries, and greater legal certainty for all parties involved. The expectations are that these measures will ease the burden on businesses and help curb illegal employment.

In this dynamic environment, successful companies are those that look beyond borders and plan sustainably. As a recruitment company specializing in third-country workforce solutions, we support employers throughout the entire process—from selecting suitable and motivated employees to ensuring full administrative and legal compliance.

The shortage of people will not resolve itself. The real question is which companies will adapt in time and turn the global labor market into a competitive advantage.