15.04.2025
On April 4, 2025, during the roundtable “The Labor Market and Euro Area Accession – Challenges and Expected Effects” the results of the first stage of the research project “Adapting the Labor Market in the Context of Euro Area Membership: Socio-Economic Dynamics, Technological Modernization, Demographic Changes, and Educational Restructuring” were presented. The project is funded by the Research Fund of the Ministry of Education and Science and is jointly implemented by the leading organization Sofia University St. Kliment Ohridski – Faculty of Economics and Business Administration, the Economic Research Institute at Bulgarian Academy of Sciences (ERI at BAS), and the University of Reading, UK.
During the roundtable, held at the ERI at BAS, six reports were presented and the Joint Research Center for Innovative Labor Market Policies in Bulgaria was inaugurated. This center aims to facilitate knowledge transfer and collaboration among young researchers from the project institutions, focusing on current issues in economic policy in the context of euro area membership. Over 60 participants joined the roundtable, including representatives from the three project institutions, the Bulgarian National Bank, Ministry of Finance, Union of Economists in Bulgaria, Bulgarian Chamber of Commerce, Association of the Industrial Capital in Bulgaria, Confederation of Independent Trade Unions in Bulgaria, Plovdiv University Paisii Hilendarski, Higher School of Insurance and Finance, media representatives, and others.
In her welcome address, Prof. DSc. Sonia Mileva, Vice-Rector of Sofia University, emphasized the strong collaboration between the institutions involved in the project and the public resonance of the expected outcomes, as evidenced by the large number of participants in the roundtable. In their remarks, Prof. Dr. Irena Zareva-Zafirova, Director of ERI at BAS, and Assoc. Prof. Dr. Atanas Georgiev, Dean of the Faculty of Economics and Business Administration, also highlighted the fruitful cooperation between SU and BAS and the new opportunities emerging through the creation of the Joint Research Center. Assoc. Prof. Dr. Alexander Mihailov from the University of Reading stressed the interest of UK researchers in the project and outlined future prospects for deepening cooperation. Prof. Dr. Nadya Velinova-Sokolova from the Research Fund at the Ministry of Education and Science pointed out that the activities carried out so far are promising for the project's successful completion and underscore its fundamental nature. Assoc. Prof. Dr. Dimitar Zlatinov, the project leader, introduced the roundtable participants to the project’s goals and the research team, which consists of 18 scholars from SU, BAS, and the University of Reading. During the first panel, moderated by Prof. Dr. Iskra Beleva, presentations were delivered by Assoc. Prof. Dr. Ralitsa Simeonova-Ganeva, Prof. Dr. Victor Yotzov, and Prof. Dr. Stefan Petranov.
Assoc. Prof. Dr. Ralitsa Simeonova-Ganeva focused on the state of the labor market in Bulgaria during the period 2003–2024 and presented forecasting models for its future development, with an emphasis on key structural imbalances. The main focus was on factors determining employment dynamics and the impact of investments in physical capital on the labor market. She highlighted a projected continued decline in the workforce and employment levels, an increase in the share of employees with higher education—accompanied by a surplus of such professionals—and a shortage of workers with secondary education, which will not be compensated without changes in labor mobility and migration processes.
In his report, Prof. Dr. Victor Yotzov stated that structural reforms, investment in human capital, and access to the EU Single Market are the main drivers of convergence. He emphasized that euro adoption should be viewed as part of a broader integration process, and experience from Central and Eastern European countries that have adopted the euro shows that one of the most significant effects of the common currency is the increase in real wages. He stressed that to maintain economic competitiveness, wage growth must align with labor productivity.
Prof. Dr. Stefan Petranov presented quantitative assessments of the scale of undeclared labor in Bulgaria, analyzing the factors that encourage it and the institutional conditions enabling its persistence. He emphasized that Bulgaria must align its labor law enforcement with euro area standards, including tackling the shadow economy and undeclared labor, which is key to economic stability, tax collection, and meeting fiscal requirements.
In the second panel, moderated by Assoc. Prof. Dr. Mariella Nenova-Amar, presentations were delivered by PhD Student Nino Avreyski, Assoc. Prof. Dr. Stela Raleva, Chief Assistant Dr. Stoyan Shalamanov, and PhD Student Rositsa Stelianova. Nino Avreyski, working with Prof. Dr. Vania Ivanova, emphasized that the green restructuring of the economy has diverse effects on employment models. The green transition is significantly transforming the EU labor market, with growth expected in green jobs, particularly in renewable energy, transportation, energy efficiency, and the circular economy. Assoc. Prof. Dr. Stela Raleva pointed to a trend of increasing labor productivity in Bulgaria, although it lags behind other euro area countries from Central and Eastern Europe. Compared to Hungary, Slovenia, and Slovakia, this is due to a lower starting base and compared to Romania – to slower growth rates. Chief Assistant Dr. Stoyan Shalamanov and Dr. Rositsa Stelianova discussed labor market challenges related to euro area membership stemming from labor market flexibility, workforce mobility, social policy and protection, and the difficulties faced by some countries that have already joined. These specificities necessitate the creation of targeted regulations to avoid social and economic problems in the context of Bulgaria’s euro area membership.