Publication: Bulgaria : Raising Skills for Employment, Growth and Convergence
Date
2009-09
ISSN
Published
2009-09
Author(s)
World Bank
Abstract
The Bulgarian labor market has seen
remarkable improvements in recent years and has contributed
to strong economic growth. The benign environment for job
creation is now changing, as the global economic crisis
impacts on labor market demand in Bulgaria. Compared to the
EU27 averages, activity and employment rates have remained
low, and Bulgaria has significant untapped domestic labor
reserves. Bulgarian pupils in school also do not acquire the
necessary skills and competencies to compete in a high
innovation economy. Continued available vacancies suggest
that skills shortages remain a barrier to employment even
during the crisis and measures to retrain and up-skill the
unemployed and those at risk of lay-off is an important
policy direction for the short-term. In light of Bulgaria s
demographic decline over the coming decades, medium-term
growth and convergence require sustained increases in labor
productivity and investments in human capital. Short-term
measures during the economic crisis ideally combine efforts
to keep workers in employment through temporary publicly
subsidized short-working hour schemes as well as the use of
unemployment benefits and measures to accelerate transitions
from old to new jobs. The economic crisis is an opportune
moment to address skills shortages both to tackle
unemployment and to help the recovery in the short-term and
to promote the foundation for medium-term economic growth
and convergence. Looking at the medium term, with
Bulgaria s labor productivity remaining low in a European
comparison, sustained interventions from early childhood to
adult education are necessary over the coming years to raise
human capital and ensure the increases in labor productivity
that Bulgaria needs to accelerate growth and convergence. In
satisfying the growing demand for skilled labor and boosting
employment, Bulgaria needs to urgently look at promoting the
transition of young people from education to the labor
market, including through keeping them longer in school and
ensuring they earn the skills that are in demand in the
labor market as well as promoting part-time employment and
internship programs for young people.
Citation
“World Bank. 2009. Bulgaria : Raising Skills for Employment, Growth and Convergence. © Washington, DC. http://openknowledge.worldbank.org/entities/publication/60109c44-d8c5-55ce-b4e6-3e1d5176df66 License: CC BY 3.0 IGO.”