Business Hiring Declines as Production Shrinks in Bulgaria

Data from a major job posting platform and the National Statistical Institute (NSI) indicate that businesses in Bulgaria are slowing down their hiring efforts, a trend linked to a reduction in production levels. In July, job advertisements dropped by 7 percent, roughly 3,000 fewer listings compared to the same month last year.

The manufacturing sector experienced the sharpest fall in job offers, down by 21 percent. This decline reflects ongoing production downturns and cautious outlooks among business leaders. NSI figures show that manufacturing output has contracted for six consecutive months year-on-year as of May. Specific industries within manufacturing reveal even more persistent declines: textile production has decreased for eight months running, clothing manufacturing for 26 months, and basic metals production for 11 months consecutively.

The July business climate survey conducted by NSI among company managers reveals a worsening sentiment within the industrial sector. While there has been some improvement regarding new order inflows over the previous three months, expectations for production growth in the coming quarter remain muted. This cautious stance directly impacts demand for new employees.

Following manufacturing, the hotel and restaurant sector saw a 14 percent reduction in job postings compared to the previous year, possibly influenced by the recruitment of foreign workers. Marketing and advertising also experienced a 13 percent drop. Job advertisements in accounting, audit, finance, as well as logistics and transport, declined by 9 percent each. Sectors such as information technology, healthcare, administrative services, and trade also reported fewer job openings. Contrarily, construction bucked the trend with a 5 percent increase in job offers.

A recruitment firm’s analysis attributes the July slowdown to several factors. Summer vacation season typically lowers activity from both employers and job seekers. Beyond seasonal effects, economic stagnation, the growing integration of Artificial Intelligence in work processes, increased labor imports from outside the EU, and persistently low unemployment rates all contribute in varying degrees to the reduced job supply.