What kind of year was 2025 for the Bulgarian labor market, and what can we expect in 2026?

The year 2025 brought significant changes to the Bulgarian labor market, marked by more moderate dynamics, more cautious workforce planning by employers and a stronger focus on sustainability, talent retention and the development of key skills. While demand for qualified professionals remained high across several sectors, companies increasingly began adapting their strategies to new economic and demographic realities.

In an interview with Economy.bg, our Head of Recruitment Services, Mihail Mihaylov, shares expert insights into labor market trends in 2025, based on observations from Elevate’s Recruitment Specialists across various industries. In this article, you will find an analysis of salary developments in Bulgaria during 2025, the sectors that experienced the most significant transformations, and the key trends expected to continue shaping the Bulgarian labor market in 2026.

1. What were the key labor market trends in 2025?
In 2025, the Bulgarian labor market remained dynamic, though with noticeably lower intensity compared to previous years. IT, Engineering, Manufacturing and the BPO/SSC sector continued to be the main drivers of employment, albeit at a more moderate pace. The hybrid work model remained dominant, however, there was a clear trend toward more in-office days and fewer remote working days, driven by evolving organizational and business needs. Companies increased investments in digitalization, automation and internal training programs to develop new skills within their teams. Due to the ongoing shortage of qualified talent, employee retention through stability, development opportunities and a strong employer experience remains, and should continue to be a key priority.

2. How did compensation change in 2025?
In 2025, the average salary increase in Bulgaria reached just over 8%, with approximately 90% of employers raising salaries for some or all of their employees. The IT sector reported growth below the national average, influenced by more cautious market dynamics and a slowdown in demand for new talent. The BPO/SSC sector recorded the lowest salary growth, mainly due to strong cost pressure and a focus on expense optimization. Although salary growth remained positive, it was the most moderate increase seen over the past three years, indicating more conservative budgeting practices. To remain competitive, companies expanded benefits packages, introduced more flexible bonus models and strengthened their focus on employee development and retention.

3. What are your expectations for the labor market in 2026?
In 2026, the labor market is expected to remain stable, but with more moderate growth rates, particularly in the IT and BPO sectors. The outsourcing industry is likely to continue its transformation toward higher value-added services related to Automation, Data Analytics and the management of more complex business processes. Demand for engineers, technical specialists and manufacturing professionals is expected to remain strong, while employers will further increase investments in reskilling initiatives, internal training programs and corporate academies. Demographic pressure will continue to pose a challenge, driving increased interest in attracting both specialists and operational staff from abroad. Overall, 2026 is shaping up to be a year of resilience, optimization and a more structured approach to team expansion.

4. What are your expectations for compensation in 2026?
In 2026, compensation levels in Bulgaria are expected to continue rising, but at an even more moderate pace, building on the slowdown observed in 2025. The smallest increases are anticipated in the IT and BPO sectors, where companies will seek a more effective balance between costs and market competitiveness. In engineering, technical, and manufacturing roles, salary increases are expected to continue, though without sharp spikes. Employers are likely to move toward more individualized compensation models, more flexible bonus structures, and development programs as part of the overall rewards package. The outlook for 2026 suggests that while compensation will remain an important factor, its growth rate will be noticeably lower compared to the past few years.