The labor market in Bulgaria continues to cool even in the height of summer

The labor market in Bulgaria continues to show signs of cooling. In June, there was a marked decline in the number of job postings – both on a monthly and annual basis. Data from the traditional monthly analysis by the HR company and career website JobTiger shows that job openings decreased by 8% compared to May, which amounts to about 3,000 fewer positions.

The total number of job postings for the month amounted to about 37,000. This alarming trend is even more pronounced on a year-over-year basis, with a 15% decline (6,600 fewer postings compared to the same period last year). Analysts point out that this is not an isolated case, but a lasting trend.

For yet another month in a row, we’ve been observing a downward trend in job postings compared to the previous year.”

The biggest surprise comes from the “Hospitality and Restaurant” sector. Although the summer months are traditionally the peak period for hiring in the tourism industry, the pace of hiring in this sector slowed in June. The sector recorded the sharpest monthly decline of 29% (or 2,196 fewer job postings), and on a year-over-year basis, the contraction was as much as 27%.

A decline in job postings in June was recorded without exception in all other economic sectors:

• Trade and Sales: -1,007 job postings (-10%);
• Manufacturing: -865 job postings (-11%);
• IT: -361 job postings (-8%);
• Logistics and Transportation: -306 job postings (-9%);
• Construction: -302 job postings (-13%);
• Healthcare and Pharmacy: -252 job postings (-11%);
• Administrative and Support Services: -238 job postings (-5%);
• Accounting, auditing, finance: -138 job postings (-7%);
• Marketing and advertising: -109 job postings (-12%).

Despite the negative trend, “Trade and Sales” remains the leader in terms of total volume – accounting for over 25% of all job postings in the country. It is followed by “Manufacturing” with 19% and “Hospitality and Restaurants” with 14%.

Remote work is also losing ground

The downward trend in job postings has not spared opportunities for remote work or working from home.

In June, these were down 5% (about 110 positions) compared to May, reaching a total of nearly 2,400 job postings. This type of employment now accounts for just 6.9% of the total job market.

As expected, the high-tech (IT) sector remains the main driver of remote work, accounting for 37% of these job postings, followed by “Administrative Services” (18%), “Outsourcing (BPO)” (12%), and “Retail” (9%).

How is the decline reflected by city?

The reduced supply is felt most strongly in coastal cities, confirming the hypothesis of a weaker start to the tourist season. The total number of job postings in the leading regional cities has fallen by 10% on a monthly basis, with Varna (-20%) leading the decline, followed by Burgas (-13%).

A key factor in this is likely the reduced supply in the “Hospitality and Food Service” sector, according to Job Tiger.

In terms of market share, the capital continues to account for the largest share of the labor market, with 34% of job postings. Plovdiv holds 8%, Varna remains at 7%, Burgas at 3%, and Ruse and Stara Zagora each at 2%. The remaining cities and towns in the country share a total of 44% of the market.

It remains to be seen whether July and August will be able to make up for the lag in employment, or whether the labor market is entering a more prolonged phase of stagnation.

Translated with DeepL.