Bulgaria is second in Europe in terms of rising labor costs. This is shown by Eurostat data for the second quarter of 2024. The biggest increase in the cost of hourly wages is in Croatia – 17.6%. Bulgaria has 15.4 percent, and Romania -15%.
“The statistics show that the common labor market in Europe is working. All of Eastern Europe, excluding Slovenia, reported extremely rapid growth. It is 2 times higher than the EU average. For the last 6 years, wages have doubled in our country. The question is again in the low starting base even after these changes”, commented in the studio of “Hello, Bulgaria” Lachezar Bogdanov, chief economist of the Institute for Market Economy.
According to him, Bulgarian business is facing several challenges.
"In addition to labor becoming more expensive, in the next 10-12 years the labor force will decrease by more than 400 thousand people. Not only the private sector but also the public sector will have to learn to work with fewer people using technology. In order to be able to pay and motivate staff, you must first reform the system. That is, people with higher education should not fill out forms by hand and accept folders in queues, but should engage in work that requires this education" ;, added Bogdanov.