Labour Shortages Remain a Major Constraint for Bulgarian Businesses in 2026

The latest data for September 2026 point to continued pressure on recruitment, labour costs and capacity planning.

Labour shortages remain one of the main constraints on business activity in Bulgaria. This is reflected in the latest National Statistical Institute business survey for September 2026. The issue remains visible in manufacturing, construction and retail, while its reported negative impact increased month on month in manufacturing and construction.

The survey does not directly count vacant jobs. It captures managers’ assessment of the factors limiting their business activity. The results should therefore be read alongside data on unemployment, employment, job vacancies and labour costs. Taken together, these indicators describe a market in which the presence of potential candidates does not necessarily mean that employers can find people with the right skills, location, pay expectations and availability.

Where the pressure is most visible

Construction is one of the sectors where the shortage is particularly evident. In September 2026, 45.7% of construction companies identified labour shortages as a factor limiting their activity. It was among the most significant constraints, together with the uncertain economic environment and material costs. For employers, this means that delayed recruitment can affect not only one team but also project deadlines, the ability to accept new orders and the use of available capacity.

Manufacturing also continues to face significant recruitment pressure, with the reported negative impact of labour shortages increasing in September compared with the previous month. This environment makes it harder to maintain production schedules and can increase reliance on overtime, task redistribution and accelerated onboarding. Retail is affected as well, particularly where shortages influence opening hours, customer service or a company’s ability to staff multiple sites.

Low unemployment does not eliminate hiring difficulties

In the second quarter of 2026, Bulgaria’s unemployment rate was 3.5%, with 107,100 unemployed people. The number of employed people was 2,917,900, while employment among people aged 15 to 64 was 31,700 lower than in the same quarter of 2025. These figures help explain why employers may struggle to fill a role even when the position appears attractive in the wider market.

Bulgaria’s job vacancy rate was 0.9% in the first quarter of 2026, compared with an EU average of 2.1%. This indicator measures unfilled positions for which employers are actively seeking candidates, but it does not capture every form of skills shortage or every difficulty in finding a suitable employee. A company may have relatively few formally advertised vacancies while still being unable to find people with the required experience, qualifications or willingness to work under the offered conditions.

The European Commission also assesses that significant labour shortages continue in manufacturing, construction, education and healthcare. Demographic trends and the shrinking working-age population are among the factors identified. For employers, this suggests that recruitment difficulties are not necessarily a temporary result of one season or one hard-to-fill position.

Higher labour costs make retention more important

Recruitment pressure is developing alongside higher labour costs. In the second quarter of 2026, total hourly labour costs increased by 9.9% year on year. The increase was 12.2% in manufacturing and 11.5% in services. These figures cover not only pay but also other costs associated with employment.

For employers, the practical question is how to combine competitive compensation with productivity and cost control. In a tight labour market, a one-off salary increase may help attract a candidate, but it does not always address the reasons employees leave. Companies should also examine recruitment costs, training, replacement costs and the productivity lost when positions remain vacant or teams change constantly.

A useful starting point is to monitor turnover, absence, time to hire and the reasons employees leave. These figures should be compared with conditions in the relevant local labour market rather than with national averages alone. In some cases, better shift planning, a clearer onboarding process, development opportunities or more predictable working hours may have a stronger retention effect than a change to base pay by itself.

How employers can plan more sustainably

The first step is to start recruitment earlier. This is particularly important in construction, manufacturing, transport, retail and seasonal activities, where delays can limit order fulfilment or force changes to operating capacity. Workforce plans should cover not only the number of employees required, but also recruitment lead times, notice periods, onboarding and the time a new employee needs to work independently.

Alongside external recruitment, companies can invest in internal training and reskilling. This may include preparing employees to handle a broader range of tasks, creating structured onboarding programmes and using experienced colleagues as mentors during the first weeks. Automation can also reduce reliance on constantly finding additional staff for repetitive processes, although each opportunity should be assessed against the actual workflow, investment required and skills available within the organisation.

When the local market cannot provide enough candidates, hiring workers from third countries may form part of the solution. It requires realistic planning for administrative procedures, qualification checks, arrival arrangements, workplace integration, language support and team inclusion. This is not a quick substitute for standard recruitment; it is a process that should be incorporated into workforce planning early enough to allow for the necessary steps.

How to interpret labour-shortage indicators

No single indicator describes the labour market on its own. Business surveys show how managers assess the constraints on their operations. Unemployment and employment data describe the broader condition of the market, while the job vacancy rate shows the share of positions for which employers are actively seeking candidates. Labour-cost data add the financial dimension of the pressure on businesses.

For an individual company, the most useful approach is to combine these external indicators with internal data: time to hire, offer acceptance rates, turnover, absence, overtime costs and the results of onboarding. This helps employers determine whether the main issue is a shortage of candidates, a skills mismatch, regional limitations, uncompetitive conditions or insufficient workforce planning.