Construction Sector Leads, Teachers Overtake Healthcare Workers in Labor Demand

The demand for labor, both short-term and long-term, remains notably high—this is the main takeaway from the latest labor market study by the Employment Agency. However, shifts are evident across sectors and professions: in the trades, construction workers now outpace machine operators, while the tourism sector’s need for staff has declined. Among positions requiring higher education, there is a marked increase in demand for teachers over healthcare workers. The persistent long-term shortage of skilled labor underscores the need for reforms in key policies across education and labor markets to address structural issues within these systems.

According to employers surveyed by the Employment Agency, hiring difficulties are intensifying, with 66.7% facing challenges in 2024, up from 64% the previous year. The primary issue remains insufficient qualifications, education, and skills among available candidates (43%). An increasing factor is the overall lack of working-age individuals, with 16% of employers reporting a general labor shortage and 12% struggling to find candidates for specific open positions. It is worth noting, however, that this data only applies to the 14% of firms intending to hire new staff—the majority of employers see no need or possibility to expand their workforce.

The industry structure of labor demand registered by the Employment Agency (for the next 12 months) is also undergoing significant changes. Industry continues to play a leading role (36% of total demand for 212,000 workers), but construction (21%) has now taken second place, displacing trade, transport, and tourism (20%). These changes reflect, on the one hand, the normalization of the labor market after the COVID-19 pandemic and, on the other, the return of tourism to pre-crisis levels, as well as the ongoing expansion of the construction sector. State administration, education, and healthcare (20%) are also gaining prominence, mainly due to the needs of hospitals and schools.

Looking at the demand for skilled workers reveals significant shifts. In 2024, the shortage of builders takes the lead—nearly 23,000 individuals compared to 8,300 the previous year. Demand for construction technicians has also grown substantially, from 1,200 to 5,100 individuals. Demand for tailors has risen to 9,700 individuals. However, the declared shortage of cooks, waiters, and bartenders is gradually decreasing, corresponding to a rapid increase in hiring within the “hotels and restaurants” sector, supported by the influx of foreign workers into the Bulgarian labor market.

In the industrial sector, trends are mixed. The shortage of machine operators has decreased by nearly 5,000 individuals to 9,600, but unsatisfied demand for locksmiths (3,900) and welders (3,400) is growing. Labor demand remains divided into two categories: professions facing a shortage of qualified specialists and those with wage levels that are not competitive nationally or within the EU labor market. This is particularly evident in the garment industry, tourism, and construction.

A notable shift is also observed among positions requiring higher education. In 2024, teachers top the list, with a shortage of 6,500—an increase of over 2,000 compared to the previous year. This raises questions about the effectiveness of teacher pay reforms and highlights the need for additional measures. The shortage of nurses has significantly decreased to 3,600, and the shortage of doctors is now at 2,000. These shortages reflect mismatches between the structure of higher education specialties and labor market needs, as well as poor working conditions and pay in certain professions, particularly for nurses.

Regionally, immediate labor demand is recovering from recent anomalies and generally aligns with the labor market structure. The capital, Sofia, ranks first, with a demand for 47,000 workers, followed by Varna (29,000), Plovdiv (23,000), and Burgas (22,000). The sectoral profile of demand varies: tourism, trade, and transport lead in many areas, construction dominates in Burgas and Sofia, and industry prevails in Plovdiv. Shortages in education and healthcare are relatively evenly distributed across regions.

Despite uncertainties about the energy transition, labor demand in Stara Zagora remains strong, while economically less developed regions like Smolyan, Blagoevgrad, and Kardzhali are gaining prominence, mainly due to the manufacturing industry’s growing role. Conversely, regions such as Vidin, Gabrovo, and Razgrad are at the bottom, with weak labor demand and limited potential for employment growth. Some regions, such as Smolyan, Targovishte, and Gabrovo, have seen significant reductions in unsatisfied demand, reflecting employers’ expectations and local labor market realities.

While short-term labor demand has declined compared to last year, employers’ long-term expectations remain optimistic, with a projected deficit of 483,000 workers over the next 3-5 years. This shortfall, driven by anticipated economic growth and business expansion, approaches half a million workers and highlights the difficulty of addressing such gaps in an already tight labor market.

The largest medium-term labor shortages among secondary-education specialists are expected in wholesale and retail trade (39,000), construction (18,000), marketing and advertising (18,000), and accounting (14,000). Among higher education graduates, educators are now expected to face the largest shortfall (13,200 individuals), overtaking economists (11,500). Demand in social work has doubled, while shortages for nurses and doctors have slightly declined. However, combined, these “health” professions still constitute the largest shortfall over the next five years.

Medium-term labor demand is highly concentrated in Sofia, where employers anticipate needing 241,000 workers—almost 30,000 more than projected in 2023—primarily higher-education graduates. Varna follows with a need for 31,000 workers, Plovdiv with 31,000, and Burgas with 22,000. Outside Sofia, most regional labor markets expect higher demand for secondary-education workers.

At this stage, the slowdown in economic growth does not appear to negatively impact labor demand significantly. On the contrary, shortages in key sectors—caused by a lack of specialists, poor conditions, or inadequate pay—are serious constraints on business growth and, consequently, economic growth in the medium term. The significant medium-term demand underscores the urgent need for reforms to improve education and labor market policies, enhance the quality of school and vocational training, promote lifelong learning, activate inactive individuals, and attract foreign workers.

[1] It is important to note that Employment Agency surveys better capture demand in traditional sectors than in modern, high-tech industries.