Bulgarian employersexpect slower hiring pace in Q4 2014

  • image00113% ofBulgarian employersare planning to add to their payrolls during the fourth quarter of this year, reporting positive hiring plansin 5 out of 10 industry sectors, and in 3 out of the 5 regions surveyed. The Net Employment Outlookin Bulgaria for the October-Decemberperiod is +3%. 
  • The Net Employment Outlook for Q4 2014 has declined by 11 percentage pointsquarter-over-quarterand by 1 percentage pointyear-over-year. 
  • Results indicate most optimistichiring plansin the sectors of Finance, Insurance, Real Estate & Business Services, and Transport, Storage & Communication, with employers in both sectors reporting a Net Employment Outlook for Q4 2014 of+14%.They are followed by the sectors of Wholesale & Retail Trade (+10%) and Manufacturing(+9%). Employersin the Restaurants & Hotels sector (-26%) reportthe gloomiest hiring intentions. 
  • Employersin the Sofia regionreport the strongesthiring intentionsfor Q4 2014,with a Net Employment Outlookof +9%, followed by the regionsof Plovdiv (+5%) and Varna (+2%).The weakestNet Employment Outlooks are reported in the regionsof Rousse (-2%) and Burgas (-7%), where we witness a decline in hiring intentions for the next quarter. 
  • Big companiesreportthe most optimistichiring plans, standing at +13%, followed by mid-sized, small and micro companies, reporting hiring forecasts of +2%, +2% and +1%respectivelyfor Q4 2014.

 Sofia, September 9, 2014 – Bulgarian employersexpect the hiring pace to decline considerably in Q4 2014. In comparison to the July-September time frame, forecasts in most of the industry sectors and all of the regions decline. However, Bulgarian expectations remain positive overall with employers reporting a Net Employment Outlookof +3%, according to the latest Manpower Employment Outlook Survey.Quarter-over-quarterthe Outlook declines considerably, but is relatively stable in ayear-over-year comparison. Out of the 750employers taking part in the survey, 13percentstate that they intend to hire new employees during the October-December period, while 10percentintend to reduce their workforce. However, more than three out of four employers intend to leave their current workforces intact through the end of the year, signalling an overall level of stability in Bulgaria’s labor market. Among all regions, employers in Sofia reportthe strongesthiring plansfor Q4 2014.In sector terms, employersin Finance, Insurance, Real Estate & Business Services and in Transport, Storage & Communicationreportthe strongesthiring plans.

Employersreport positive hiring plans in three out of the five Bulgarian regions surveyed

Employersin three out of the five Bulgarian regions included in the survey indicate positivehiring intentionsfor Q4 2014.Employers in the region of Sofia city are most optimistic, with the Net Employment Outlookthere standing at +9%. Employersin thePlovdivregion report a net outlookof +5% and Varna region reports a net outlook of +2%, while the employers indicating the weakest forecasts are in the regionsof Rousse (-2%) and Burgas (-7%),where hiring intentions for the next quarter have declined.

“Despite the decline in forecasts in allregions, hiring plans remain mostly positive,” commentedNadia Vassileva, Managing Director of ManpowerBulgaria, Serbia and Croatia. “In the third quarter we witness some stirring among foreign companies in Bulgaria. Regardless of the economic difficulties, Bulgariaremains a preferred location for foreign investment and business positioning.ABB Bulgaria, part of the Swedish-Swiss ABB Group, is one example. The company is to open a new factory in Plovdiv. The project is worth USD 23 million. The factory’s launch is expected to result in about 600 new jobs. The company’s first facility in Bulgaria currently employs 1,000 people, so we can be optimistic about the outlooks,”Nadia Vassileva added.

“Bulgariaattracts the interest of foreign companies intending to open or look for new factories in the country. The Turkish company Dubleks Glass is planning to open a glass factory in the town of Svilengrad. The initial investment alone will be EUR 8.8 million. This includes renovation of the buildings, equipment, operating funds and staff training. The factory will initially hire 115 people, and their number is to reach 250 in two years.

“Another large company making its first appearance in Bulgaria is Luxoft. It has selected Sofia for its development centre in Bulgaria. Currently, 500 new work places are planned. Luxoft develops new-generation software for financial institutions, as well as software for next-generation cars.One of the main reasons for the company to position its business in Sofia is that according to the company 3 000 IT specialists graduate in Bulgaria per a year,”Nadia Vassileva added.

“In addition to foreign investment, there are also various programmes supporting job seekers in the different regionsof Bulgaria. Up to now, approximately BGN 19 million has been invested under the government’s Public Investment Programme in the region of Vratsa. It is planned that an additional BGN 932,640 will be invested under the Security Programme, resulting in 290 people being hired to be in charge of public order,” Nadia Vassileva explained.

The sectors showing the most optimistichiring intentionsfor Q4 2014 are Finance, Insurance, Real Estate & Business Services, and Transport, Storage & Communication.Both reporta net outlookof +14% for Q4 2014, retaining a stable hiring pace, with no significant changes in their net outlooks for the past two quarters.

“There is a good option relating to youth unemployment throughout Bulgaria. The Youth Employment programme funds short-term internships for unemployed youths who are high-school or university graduates without any job experience in their field of study. Almost 9,400 unemployed youths have been included since 2010. Similar programmes include First Job and New Job. The First Job programme helps unemployed university students to find a job or to obtain appropriate training. Thanks to this programme, 3,300 unemployed have completed internships, and even more have found a permanent job. The New Job programme has involved 117 employers who are to provide training and employment to approximately 2,000 unemployed.

“Optimistically, Bulgariais to absorb EU funds amounting to approximately EUR 10 billion in the 2014-2020period. A large share thereof will help fight unemployment, with more than EUR 50 million to be invested in countering youth unemployment, and will contribute to a high competitiveness. It is a problem for employersthat they are unable to find adequately qualified staff. Programmes like this one give young unemployed people the opportunity to gain professional experience, which will support them in finding a suitable job. On the other handI think that there is not enough attention towards the older unemployedpopulation in working age which contributes to the problems of companies in finding the suitable”, Nadia Vassileva shared.

 

QUARTER

2013

2014

1

2

3

4

1

2

3

4

TOTAL

-4

12

14

4

1

14

14

3

BURGAS

-10

8

11

-10

-10

15

11

-7

PLOVDIV

-1

19

12

12

9

14

15

5

ROUSSE

-12

6

18

-3

2

19

21

-2

SOFIA

-1

10

14

8

3

11

11

9

VARNA

-2

17

15

5

1

14

18

2

Source: Manpower

Comparativenet outlookby sector

“Hiring forecasts are not as optimistic for Q4 2014 as for the previous quarter, and fourth-quarter hiring intentions decline by varying margins in eight of the 10 industry sectors,” commented NadyaVassileva. “However, much of the decline is attributed to seasonality. For instance, the 58 percentage point declinein employers’ hiring intentions in the Hotels and Restaurants sector (-26%) is attributable to the end of the summer season as many of the sector’s seasonal assignments come to an end,” Nadia Vassileva added.

“Some foreign companies in the Manufacturingsector are developing some of their businessactivities inBulgaria. KoradoGroup is one example. The Czech company is to invest EUR 12.5 million in modernising its radiator factory in the town of Strazhitsa. It has prepared a 5-year plan worth EUR 12.5 million, with additional investment from outside investors being BGN 7.9 million. The factory employs 177 people. After the upgrade, their number is expected to rise by 30%,” added Nadia Vassileva.

“The Czech companies ZPSV and Hronovski are further examples of foreign investment, along with the Turkish company Alcao, whose investment has opened approximately 200 jobs in the municipality of Parvomay.”

Big companies report the most optimistichiring plans, with a Net Employment Outlookof + 13%, while mid-sized,small and microcompanies’net forecasts stand at 2%, 2% and 1% respectively.Forecasts for big companiesdecline by 6 percentage pointsquarter-over-quarter and increase by 6 percentage pointsyear-over-year.

 

QUARTER

1

2

3

4

1

2

3

4

TOTAL FOR BULGARIA

-4

12

14

4

1

14

 14

 3

AGRICULTURE, FORESTRY, HUNTING & FISHING

-18

20

12

2

12

17

15

 -6

CONSTRUCTION

-15

23

22

8

-5

1

15

 -6

WATER/ELECTRICITY/GAS SUPPLY

2

2

0

-12

-8

2

2

 0

FINANCE, INSURANCE, REAL ESTATE & BUSINESS SERVICES

12

17

17

14

11

22

17

 14

MANUFACTURING

-2

9

17

16

9

14

10

 9

MINING & QUARRYING

-13

10

-12

-12

-10

10

5

 6

PUBLIC & SOCIAL

0

6

17

3

-3

5

13

 -1

RESTAURANTS & HOTELS

-17

14

35

-20

-16

33

32

-26

TRANSPORT, STORAGE & COMMUNICATION

-7

4

17

6

1

19

12

14

WHOLESALE & RETAIL TRADE

4

14

2

5

5

11

16

 10

Source: Manpower

Question: All survey participants answered the same question: ‘’How do you anticipate the employment rate in your region to change in the three months until the end of December 2014 as compared to the current quarter?’’

About ManpowerGroup

ManpowerGroup™ (NYSE: MAN) has been the world’s workforce expert, creating innovative workforce solutions, for more than 65 years. As workforce experts, we connect more than 600,000 men and women to meaningful work across a wide range of skills and industries every day. Through our ManpowerGroup family of brands — Manpower®, Experis™, Right Management ® and ManpowerGroup™ Solutions— we help more than 400,000 clients in 80 countries and territories address their critical talent needs, providing comprehensive solutions to resource, manage and develop talent. In 2014, ManpowerGroup was named one of the World’s Most Ethical Companies for the fourth consecutive year and one of Fortune’s Most Admired Companies, confirming our position as the most trusted and admired brand in the industry.

 About Manpower Bulgaria  

Manpower is one of the leaders on the Bulgarian market  in contingent and permanent recruitment workforce solutions. It is part of ManpowerGroup, the world leader in innovative workforce solutions, which creates and delivers high-impact solutions that enable clients to achieve their business goals and enhance their competitiveness. With branches in Sofia, Plovdiv, Bourgas and Varna, Manpower has provided organizations in Bulgaria with a continuum of strategic staffing solutions for nine years now, working with businesses from all industry sectors to help them win. In the Human Age, where talent has replaced access to capital as the key competitive differentiator, Manpower Bulgaria leverages its trusted brand to develop a deep talent pool, providing clients with access to the people they need, fast. Manpower Bulgaria creates powerful connections between organizations and the talent they need to enhance their competitiveness and unleash their workforce potential. By creating these powerful connections, we help everybody achieve more than they imagined, and power the world of work.
www.manpower.bg

For further information and to arrange an interview, please contact:
Nina Nedelcheva, nina.nedelcheva@ndg-communications.eu, +359 887 378 328

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