The state of the Bulgarian labor market at the end of 2023 points to a tendency towards stagnation. This is the conclusion of an analysis of the Institute for Market Economy.
As of mid-2021, the unemployment rate remains in the 4-5.5% range, which is lower even compared to the pre-pandemic period. Those who are employable have found jobs, while those who had been unsuccessful have moved into the inactive group. They either have inadequate education and skills, or are in regions where demand for workers is low. Against this backdrop, the demand for workers has also been decreasing, according to data from the first months of 2024.
Shrinking competition for workers potentially reduces pressure on employers to raise wages, and the slowdown in employment growth, in turn, threatens the economy's growth potential, analysts said.
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