Qualified Labor: Supply and Demand Perspectives

1. Qualified Labor: Supply and Demand Perspectives Project: Attractive Vocational Guidance for Pupils/@VGP 24 September 2010 Sofia

2. Objectives of the Survey • To examine the current labor market status and potential; • To identify the labor market needs for labor force with specific professional qualifications and educational profile; • To outline industry specific tendencies for qualification and skills;

3. More specifically • Current job vacancies • Practice of recruiting vocational and technical high schools graduates • Employers’ assessment of quality of education in VET

4. Labor Market Update • Total employment in Bulgaria shrank to 3.1 million people in the 12 months to June 2010. That is a decline of over 200,000 jobs compared to a year ago. 4

5. Total Employment in Bulgaria 5

6. Job Losses Concentrated in: • 1/ Private sector, • 2/ Labor-contract employment, • 3/ Manufacturing. 6

7. Segments of Labor Demand • Basic positions (demand for which can be met by unqualified labor) • Middle skillset positions (which require certain qualities and skills, but not necessarily specialized knowledge) • Positions requiring specialized knowledge • Management positions

8. Wage Rise in 2010 8

9. Employment distribution

10. Segments of Labor Supply • according to the List of professions for VET, divided in following broader categories: • 1/ staff with qualifications in the filed of techniques, technologies and transport • 2/ staff with qualifications in the field of construction • 3/ staff with qualifications in the field of finance, business administration and marketing • 4/ staff with qualifications in the field of services • 5/ staff with qualifications in the field of arts and crafts • 6/ staff with qualifications in the field of agriculture and food processing industry • 7/ staff with qualifications in the field of healthcare

11. Core Skills Importance • Importance of core skills from employers’ perspective: • - social and communication skills • - administrative skills • - foreign language skills • - ICT skills (computer literacy) • - willingness to learn • - flexibility/adaptability • - technical skills • - others

12. Importance of core skills from employers’ perspective

13. Labor Demand Expectations • Employers’ expectations for the future labor market demand: • - expected increase in demand for certain job positions in the next 3-5 years • - expected difficulties in finding adequately trained personnel for certain job positions in the next 3-5 years • - expected shortage of labor supply in the next 3-5 years • - estimated needs for “importing” qualified workers

14. Key findings from the survey • The most optimistic employment prospects are registered regarding security personnel (38%), transport and trade (36%), polygraphy (31%), intermediation (25%) and construction (16%); • The employers’ expectations are for fastest growing employment in positions requiring technical qualifications (appr. ¼ of surveyed companies); • High employment dynamics are expected also for staff with qualifications in the field of finance, business administration and marketing; • Among the least demanded positions are those in the area of art and crafts, as well as in the field of healthcare and sports

15. Supply of labor with adequate qualities and skills in a case of business expansion

16. The most demanded professions in 2008-2010 • For middle skillset positions: • salespersons and demonstrators (4635) • tailors (3296) • cooks (2060) • real estates agents/brokers (1957)

17. The most demanded professions in 2008-2010 • For positions requiring specialized knowledge: • machinery mechanics and fitters (4635) • construction engineers (1442) • nurses (1442) • construction technicians (1339)

18. Thank you! • stoeff@iwatchbulgaria.com • www.iwatchbulgaria.com