THE DYNAMIC TRANSFORMATIONS
ON THE LABOUR MARKET
IN BULGARIA IN CONDITIONS
OF DIGITAL TECHNOLOGIES
AND PANDEMIC
Desislava Koleva-Stefanova1,

1University of National and World Economy – Sofia, Bulgaria

E-mail: 1stefanova_desi@abv.bg

Abstract: This article discusses the main transformations which have
occurred in the labour market due to the accelerated processes of digitalization
throughout the last two years. In their essence, those changes are caused by the
fourth industrial revolution and the ongoing COVID-19 pandemic. The research
places the emphasis on the necessity of developing “hybrid” forms of
employment based on flexibility and security. Special attention is paid to the
necessity of investing human capital in an environment of digital technologies
and intensive entering of artificial intellect in labour processes.
Key words: labour market, flexibility and security, professional skills.
This article shall be cited as follows: Koleva-Stefanova, D. (2022). The
Dynamic Transformations on the Labour Market in Bulgaria in Conditions of
Digital Technologies and Pandemic. Economic Archive, (4), pp. 37-57.
URL: www2.uni-svishtov.bg/NSArhiv
Jel: J21, I12.
* * *

Economic Archive 4/2022

37

T

Introduction

he COVID-19 pandemic has brought unusual changes to the social life
of the entire humanity. Serious restrictive measures were imposed; they
were related to preserving people’s health and life. Social isolation has
resulted in new organization and models of functioning of labour markets as a
large number of enterprises have switched to a remote work process. The
imposed measures have had an enormous impact on those economic sectors
which, due to the organization of the labour processes, have not been able to
adjust to “hybrid” employment. One of the most affected spheres in Bulgaria’s
business is the hotel, tourist, and entertainment sector, the restaurant business,
the automotive industry, etc. In response to this social and economic “shock”,
state institutions have implemented a package of financial stimuli targeted at the
most vulnerable enterprises and economic sectors. Despite the institutional
measures which have been adopted, many of the above-mentioned economic
sectors have had to terminate part of their business, lay off personnel, reduce
the worktime, etc. This has also brought changes to the labour market,
restructuring of the labour processes and employment to achieve flexibility and
security.
The aim of this article is to research the dynamically changing processes
in the labour market related to the establishment of new professions and forms
of efficient employment. The paper defends the thesis that there is an undisputed
necessity of wider implementation of the European concept of flexibility and
security in the labour processes combined with the evolution in the
enhancement of knowledge, skills, and competences of human capital in the
contemporary enterprise.
To achieve the aim, we shall complete the following objectives:
1. Define the economic and social factors determining the transformations on the labour market in Bulgaria;
2. Motivate the necessity of combining flexibility, security, and professional development of the workforce on the labour market in digital environment;
3. Analyze the trends and challenges on the labour market throughout
the critical for the economy period 2020–2022;
4. Draw certain major conclusions and recommendations on the basis of
the critical analysis of the information.

38

Economic Archive 4/2022

1. Economic and social factors of the transformations
on the labour market in Bulgaria in the period 2020–2022.
Europe’s first encounter with the COVID-19 virus was on 24 January
2020. All European and state institutions have made enormous efforts to limit
the fast-spreading pandemic by imposing restrictive measures with one aim – to
preserve the health and life of people. The restrictions involve strict conditions
for travelling, certain safety measures for visiting public places, hybrid educational activity, recommended remote work from home – at home offices.
The imposed general changes in the daily routine of employed persons
have resulted in tangible changes in production processes and services on the
labour market. Globally, the normal labour rhythm and organization of the
employment of the workforce have undergone significant restructuring. During
the period 2020–2021, the world economy registered a decline and a delay in
the rate of growth, which has had an impact on decreasing the demand of the
business especially in some critical production spheres.
The ongoing fourth industrial revolution and pandemic have significantly accelerated the already started smooth changes on the labour market
towards synergy between man and artificial intellect. There have been substantial changes in social life, caused mainly by several factors such as: health
crisis, digitalization, ageing workforce, the transition to green economy, virtual
forms of communication and paid distance employment. The above-mentioned
factors are part of the “catalyst” which has caused the dynamic changes on the
labour market. We shall also point out the deepening serious discrepancies
between the search for workforce by enterprises and the offered professional
skills by employees. Digital transformation has entirely changed production and
the requirement to the competences and skills of employees. The business has
faced serious difficulties regarding finding personnel with the necessary
qualities for an efficient work process.
2. The necessity of flexibility, security, and professional
development of the workforce
Bulgaria is an inseparable part of the emerging Industry 4.0 which forms
an environment of global technological transformations which experts expect to
continue into the next decade. Innovations, intensive digitalization, and artificial
intellect constantly update all sectors of the economy by introducing significant
changes on the labour market. More and more attention is paid to hybrid forms
of employment in the labour process as a factor of economic growth and
competitiveness of enterprises. Bulgaria, in unison with the concept and policy
Economic Archive 4/2022

39

of the EU of encouraging flexible labour markets, has directed its efforts
towards the development of an institutional framework which shall stimulate
the contemporary approaches for employment in a dynamic environment.
One of the priority political documents in this direction is the Employment Strategy 2021–2030. It fully supports the achievement of the Action Plan
of the European Pillar of Social Rights. The strategy focuses on taking measures
and actions for increasing the offering of labour, the increase of investments in
the knowledge and skills of the workforce in the field of digital competences.
Remote work, as one of the flexible forms of labour, is regulated in the labour
legislation as early as November 2010; it is established with the signing of a
National Agreement on the Organization and Implementation of Remote Work
among the nationally represented organizations of Bulgaria’s social partners.
This agreement has found application in the amendment and addition to the
Labour Code. 1 The document aims at normatively regulating the specific legal
relations in remote work.
Our opinion is that, despite the normative regulations which have come
into effect, and which regulate the flexible forms of employment, what we need
is a more efficient and complex legislative framework which complies with the
contemporary changes on the labour market. In the spirit of a unified and social
Europe, establishing a balance between flexible employment and social
security, which has gained public acceptance as “flexicurity”, is an essential
element of building a contemporary legislation which stimulates new professions, non-standard forms of employment and flexible numbers of the personnel.
In order for the reforms to be expedient, radical transformations in the
social security system shall be made. They shall provide an opportunity for
optimized security in the various forms of flexible labour contracts, flexible
worktime, and flexible workplaces and labour schemes.
Social security is of utmost significance when a specific social security
event has occurred, and the social risk is covered. The main purpose of
flexicurity is high degree of employment based on flexible hybrid work
processes and social security in the context of the fifth principle of the European
Pillar of Social Rights. 2 (https://ec.europa.eu/info/strategy/priorities-20192024/economy-works
people/jobs-growth-and-investment/european-pillarsocial-rights/european-pillar-social-rights-20-principles_bg). Despite the way
1

Amending and Adding to the Labour Code Act, State Gazette, issue 82 from 21
October 2011 (Section VIII B, Chapter Five – Additional Conditions of Remote Work).
2
The fifth principle of the European Pillar of Social Rights concerns good labour
conditions, the access to training and social justice. In compliance with the institutional
framework and collective agreements stimulate the innovative and adaptive forms of
employment on contemporary labour markets.
40

Economic Archive 4/2022

of contracting with flexible forms of employment, there is a potential risk of
disinformation, insufficient clarity, and discrepancies. The challenges in
building contemporary institutional legislation affect almost all issues in labour
legal relations. What is needed is a legislative framework regarding the control,
measurement of productivity, payment, bonus schemes, safe and healthy labour
conditions, social security, holidays, etc.
What is also needed is new strict rules which regulate comprehensively
the work process in non-standard forms of employment. The development of
these forms shall be part of the leading business strategy of every contemporary
enterprise if it is to be competitive and adjustable to the global technological
markets. Labour flexibility provides a better balance between work and personal
time of the workforce. It enables a large part of the population to take part in
the labour market, unlike the nine-to-five attendance workday. Some of the
social groups which have had the chance to integrate in the labour market are:
women with young children, people who look after an ill relative, people with
chronic diseases and disadvantaged people, ageing workforce, regularly
studying students, discouraged people, etc.
The fixed whole-day worktime at the office and the lack of suitable
forms of flexible labour process have led to inefficiently used capacity of the
people at working age. (Flexible forms of employment and the competitiveness
of Bulgarian enterprises, https://obuch.info/gvkavite-formi-na-zaetost-i-konkurentosposobnostta-na-blgarski.html, 2022).
The contemporary fast-developing technological world constantly
creates a series of innovations. (Dulevski, St., 2020, 58–59). In this respect, we
need radical changes which are expressed mostly in the overwhelming need for
a highly qualified workforce which possesses the skills necessary for the
professions of the future, and the hybrid forms of employment. The world trend
of development of flexible forms of employment occupies an increasingly
significant place in the work process and goes in parallel to the necessity of high
professional level of the workforce. There is a unanimous decision by all world
and state institutions to make large scale investments in the acquisition of
contemporary knowledge and skills of the workforce.
Professional competences shall meet the requirements of digital labour
markets and the reorganization of the work environment. Human capital is the
most precious resource which determines profitability, competitiveness, and
wellbeing of each economic organization. Permanent knowledge is not a formality, but an unconditional necessity in the occurrence of new professions.
Investing in innovative technologies, development activity, and security, the
reforms in education and vocational training are key aspects in the transformation of the labour market.

Economic Archive 4/2022

41

Cedefop is one of the decentralized agencies of the EU. Its primary
function is stimulating, achieving, and support of vocational education and
training (VET) in the EU member states. Cedefop plays a significant role in
developing functioning and efficient European policies in the field of VET. In
2020, the Agency develops an analytical forecast for the necessity of Bulgarian
personnel who possesses specific knowledge and skills, which shall be sought
by the business for the period until 2030. The trends on the labour market in our
country are that more workplaces shall be opened at medium and high level of
qualification, approximately 48% for each of the two educational levels, and
only 4% of the workplaces are intended for people with low or no qualification
(https://www.cedefop.europa.eu/bg/about-cedefop, 2022).
Long-term forecasts of the Ministry of Labour and Social Policy for the
period 2020–2034 point out that the highest employment is expected in the
sectors of trade, building, processing industry, health care. Professions in the
field of broadcasting information, creative products, telecommunications will
preserve their positions on the labour market (https://mlsp.government.
bg/uploads/1/lmforecasts-analysis2-bg1.pdf, 2022). In the future, the perspective professions will be specialists who process large databases, specialists
in cybersecurity, specialists in developing digital products, software engineers,
product and web designers, IT consultants, financial managers, operators of call
centers, doctors and nurses, people who work in social and health care, etc.
Some of the professions which are forecast to become extinct and be
replaced by artificial intellect are: security guards, tellers, interpreters, bodyguards, factory production activities which do not require specific knowledge
and skills, workplaces in the transport sector, including the transportation of
people, etc. The above-mentioned professions are only some of the labour
activities which are in danger of extinction. It cannot be precisely predicted
when and how artificial intellect will occupy a significant place in contemporary
labour markets, but it is without doubt that it dynamically enters all spheres of
social life. A priority goal of the state is that institutions, employers, and workforce shall be prepared and adjustable in order to meet the future transformations in the work process.
The changing professions require radical restructuring of knowledge and
skills of the workforce. The focus of active labour policy shall be on people who
are in danger of losing their workplaces due to the changes in some labour
professions or their becoming extinct. An important direction of the measures
and programmes is to form training courses that meet the demand of fastdeveloping industries which in the future will need a workforce. The investment
in the acquisition of knowledge and skills directed towards the new professions
is a significant factor in restricting future unemployment. Building stable labour

42

Economic Archive 4/2022

markets based on knowledge, high income, social security, and flexible
employment are of utmost importance.
3. Comparative analysis at educational level on the labour market
and flexible forms of employment in the period 2020–2022
This part of the article places an emphasis on the analysis of the specific
characteristics of the labour market in Bulgaria, flexible employment, digital
skills of the population, and the development of VET.
The first researched indicator allows outlining the most vulnerable
groups on the labour market, which, due to the transformation of the labour
markets, are in danger of losing their jobs even in the future.
52.7

47.7
38.5
23.3

24.0

specialists

working
professions

13.9

higher education

secondary
education

primary and
lower education

without
qualification

Source: The Employment Agency

Figure 1. Vocational and educational structure
of the newly registered unemployed persons in January 2022
Figure 1 visualizes the vocational and educational structure of the newly
registered unemployed persons in the month of January 2022. For this period,
the Employment Agency has registered a growth of the newly registered
unemployed persons by 4,087 more people compared to the end of 2021. The
destabilization on the labour market also affects the unemployed who have
started work in this month, as their number by 2,282 people fewer compared to
the month of December 2021 sourcing data from the Employment Agency
(https://www.az.government.bg/bg/stats/view/1/332/). The lowest level of
newly registered unemployed persons is observed with those who have higher
education, who are 13.9%, followed by specialists with 23.3%, whereas third
place is occupied by working professions, who are 24.0% of the newly
registered unemployed persons. The highest level of this indicator is registered
Economic Archive 4/2022

43

at the workforce without qualification, namely 52.7%, followed by those with
secondary education, who are 47.7%. Those with primary or lower education
are 38.5%. They are the lowest share of the workforce because a large part of
those with a low level of education are occupied in the shady sector or are either
discouraged or are not part of the labour market.
A) men
11.7

3.1

2016

B) women
11.9

12.1

12.2

13.4

13.6

14.3

14.0

12.3

10.6

3.3

2017

3.6

2018

2.8

2019

3.6

3.7

3.9

2.1

2020

3.2

EU

2.7
Bulgaria

2016

2017

2018

2019

2020

Source: Eurostat

Figure 2. Percentage of participation in education and training (last four
weeks) (A)-men; (B)-women, aged 25-49 years.
The second researched parameter shows the percentage of participation
in education and training (last four weeks) of men and women aged 25–49 years.
The indicator allows making a comparison by years between Bulgaria and the
average level for the EU. The participation of the workforce in such training is
of utmost importance for securing labour qualities and skills meeting the
requirements of the transforming labour markets.
Figure 2 shows that throughout all researched years, Bulgarian population aged 25–49 years is at an incredibly low level compared to the average for
the EU. With men, the average percentage for all researched years from 2016 to
2020 is 2.98%, whereas for the EU, it is 11.7%. Observations show that there
are no significant amplitude differences with men during the whole researched
period both for Bulgaria and for the EU. In our country, the percentage values
vary between 2.1%–3.6%, whereas in the EU, the boundaries are between
10.6%–12.2%. 2020 registers the lowest values for participation in education
and training by men for Bulgaria and the EU (Bulgaria – 2.1%, EU – 10.6%).
The participation of Bulgarian women in professional training courses
is at an extremely low level compared to the average level for the EU. With
women, the average percentage for all researched years (from 2016 to 2020) is
3.42%, which compared to men is by 0.44% higher. For women from the EU,
44

Economic Archive 4/2022

the average percentage for the five years is 13.52%, which compared to men is
by 1.82% percentage points higher. With both women and men, in 2020, in
Bulgaria (2.7%) and in the EU (12.3%), we observe the lowest values of this
indicator. The decrease in the participation in educational programmes in 2020
can be explained with the Covid-19 pandemic and all restrictive measures which
were imposed for limiting the spread of the disease. Those restrictions have
interfered with the normal rhythm and active policy on the labour market.
The data in figure 2 shows that with women the percentage values of this
indicator are slightly increased compared to men both for Bulgaria and for the
EU. The total average percentage of the two genders of the workforce aged 25–
49 years for the five years for Bulgaria is 3.2%, whereas for the EU, it is 12.61%
or by 9.41% percentage points higher compared to our country. The results
show by far an unsatisfactory level of the Bulgarian workforce aged 25–49 years
participating in professional trainings compared to the average value for the EU.
10.6

10.8

10.9

11.1

11.3
9.5

EU
Bulgaria
1.4

1.6

1.6

1.8

1.4

1.1

2015

2016

2017

2018

2019

2020

Source: Eurostat

Figure 3. Workforce participating in professional training courses over the
last four weeks, 2015–2020, %, aged 25–64 years.
Figure 3 discusses the percentage participation of the workforce aged
25-64 years in professional training courses. The data shows that for 2020,
similar to Figure 2, both Bulgaria (1.1%) and the EU (9,5%) register the lowest
percentage level compared to the rest of the years (2015, 2016, 2017, 2018,
2019). In Figure 2, the persons participating in professional training courses are
aged between 25–49 years, as the average level for Bulgaria for the five
researched years (2015–2020 г) is 3.2%.
Figure 3 again researches the persons who participate in professional
training courses, but the difference is that their age is 25–64 years, i.e., the oldest
Economic Archive 4/2022

45

part of the workforce is included as well (50–64 years). Figure 3 clearly shows
that the percentage of the average level of the Bulgarian workforce aged 25–64
years participating in trainings in all researched years is 1.48% for Bulgaria, and
10.7% for the EU. The lower percentage level of participation in professional
training by the workforce aged 25–64 years compared to those aged 25–49 years
shows that the aging part of the workforce has the lowest activity regarding their
participation in qualification and additional qualification courses. At the same
time, those persons are the most vulnerable groups on the labour market and
shall actively participate in training programmes for acquiring new professional
skills which shall guarantee them security in the workplace in the future.
8.7

8.2

8.1

8.8

8.7

7.7

4.2

4.2

2015

2016

4.6

2017

5.0

2018

4.2

2019

EU
3.5

Bulgaria

2020

Source: Eurostat

Figure 4. Persons outside the workforce participating in professional
training courses over the last four weeks, 2015–2020, %, aged 25–64 years.
Figure 4 shows the persons outside the workforce who participate in
professional training courses in the period 2015–2020. 2020 registers the lowest
level of participation in professional training courses of the persons outside the
workforce aged 25–64 years both for Bulgaria (3.5%) and average for the EU
(7.7%). The average value for Bulgaria for all researched years is 4.28%,
whereas for the EU 8.36%. We shall note that for Bulgaria the percentage of the
persons outside the workforce who participate in education and training courses
is higher (4.28%) compared to the persons who are in the workforce (1.48%).
The average values for the EU show contrasting results to those from our
country, i.e., a higher percentage of participation in professional programmes
by the employed and unemployed Europeans (10.7%), but not of the participants in trainings who are outside the labour market (8.36%).

46

Economic Archive 4/2022

Table 1

Skills of the Internet user, Bulgaria/EU, %, 2021

Skills of the Internet
user

Bulgaria
men

• at least basic digital
skills

28%

• more than basic
digital skills
• at least basic software
skills

Bulgaria
women

EU
men

EU
women

Place of Bulgaria
in the EU

30%

58%

54%

26%

10%

12%

33%

29%

26%

30%

32%

60%

56%

27%

Source: Women in digital scoreboard 2021, European commission

Table 1 visualizes the Internet users in Bulgaria and the average level
for the EU. In Bulgaria, the values concerning the digital skills of women
compared to men is higher by 2%. Whereas the average level for the EU is the
opposite, the difference between the two genders is between 2–4% in favour of
men. Bulgaria occupies the penultimate place by basic digital skills as the
average level of Bulgarian users is 29%, whereas in the EU it is almost double
– 56%. Bulgarians occupy again the penultimate place as regards the indicator
of more than basic digital skills – 11%, whereas the average value for the EU is
31%. 31% per cent of Bulgarians possess basic software skills as by this
indicator we occupy the last 27th place in the EU, where the average level is
58%.
a) men
b) women
8.3

8.3

8.2

8.2

7.5

31.5

31.3

30.9

30.9

28.7
EU

1.9

2016

2.2

2017

1.8

2018

1.8

2019

1.7

2020

1.9

2.1

1.7

1.8

1.8

2016

2017

2018

2019

2020

Bulgaria

Source: Eurostat

Figure 5. Employed persons who work part time, (a) – men; (b) – women,
aged 20-64 years, % of total employment, 2016–2020
Economic Archive 4/2022

47

Figure 5 shows data that registers the percentage of employment by men
and women for Bulgaria and the EU regarding part-time work time, which is
one of the flexible forms of employment. For the period 2016–2020, the average
value with men for Bulgaria during the researched period is 1.88%, whereas for
the EU it is 8,1%, which is a significantly higher percentage compared to our
country. The lowest level is registered in 2020 both for our country (1.7%) and
for the EU (7.5%). With women, the average employment for Bulgaria is 1.86%,
whereas for the EU, it is significantly higher – 30.66%. It shall be noted that the
levels of hourly employment for Bulgaria with both men and women are almost
equal, for 2020, with men it is 1.7%, whereas with women it is 1.8%. However,
in the EU, the situation is entirely different – hourly employment with women
has a significantly higher level compared to that of men for the same period.
a) men

11.6

11.7

11.5

b) women

13.6

13.8

13.7

11.1

13.1

9.9

3.8

4.1

2016

2017

3.7

4.0

2018

2019

3.4

3.4

3.7

3.6

3.8

2020

2016

2017

2018

2019

12.0

3.0

EU

Bulgaria

2020

Source: Eurostat

Figure 6. Employed persons who work under temporary labour contracts,
(a) -men; (b) – women, aged 20-64 years, % of total employment, 2016–2020
In Figure 6, the Eurostat data registers that the percentage of men
working under temporary labour contracts compared to total employment, for
our country, the average level for all researched years is 3.8%, whereas the
average level for the EU is 11.6%. The lowest values of this indicator both for
our country and for the EU are registered in 2020: for our country (3.4%),
whereas for the EU (9.9%). As regards women, the average level for the whole
period for Bulgarian women is 3.5%, whereas for the EU it is 13.24%. For
Bulgaria, we observe a slightly lower percentage with women with this type of

48

Economic Archive 4/2022

temporary employment compared to men, whereas the average level in the EU
registers the opposite, namely, a higher percentage with women.
25.1

23.1

21.5
17.0

15.7 14.8 14.8

13.9

12.6 12.3 12.2

10.9

8.9

7.4 7.3 7.2 7.0

5.7 5.4

4.5 4.5 3.6

3.1 2.5

1.2

Finland
Luxembourg
Ireland
Austria
Netherlands
Belgium
Denmark
France
Germany
Malta
Portugal
Estonia
EU
Italy
Spain
Poland
Slovenia
Sweden
Czechia
Greece
Slovakia
Lithuania
Cyprus
Latvia
Hungary
Croatia
Romania
Bulgaria

18.1 17.8 17.2

Source: Eurostat

Figure 7. People who usually work from home for 2020
The data in Figure 7 shows that in 2020 the average value of the remote
form of employment for the EU is 12.3%, whereas for Bulgaria, it is as low as
1.2%; our country occupies the last place compared to the rest of the countries.
The penultimate place is occupied by Romania with 2.5%, followed by Croatia
with 3.1%. At the other pole, with the highest level of this type of flexible
employment is Finland with 25.1%, Luxemburg is runner-up with 23.1%,
followed by Ireland with 21.5%.
4. Some conclusions and recommendations for the positive impact
on the development of the Bulgarian labour market
First, the registered results in Figure 1 show that the persons with
secondary education, without professional qualification, occupy a large share of
the newly registered unemployed persons for the month of January 2022
(47.7%). At the same time, the persons with the lowest level of education
register a lower percentage level (38.5%) compared to the above-mentioned
group of unemployed persons. The main factor for those results is that in reality,
people without education occupy an exceedingly small share of participation on
the labour market. “Low education or the lack of such decrease significantly the
opportunity for legally finding employment and is often the reason why people
in such a situation accept employment without signing any contract.” (Dulevski,

Economic Archive 4/2022

49

L., 2021:10). Most of them are employed in the shady economy and do not have
the right to register at employment agencies as unemployed persons.
Those with secondary education occupy a higher percentage of the
workforce having the right of compensations when the risk of “unemployment”
occurs. The unemployed persons with a low and average level of employment
are some of the most vulnerable groups on the labour market. They do not
possess specific professional skills; therefore, they shall be included in suitable
qualification and additional qualification courses that comply with the
developing professions of the future. State institutions face a serious challenge
to soften the expected stress situations of the dynamically transforming labour
market. “They shall prepare their social security systems for a probable growth
of unemployment and a drop in employment, whereas the educational systems
shall adjust and train some of those professions which are in demand by
employers.” (Pandurska, R., 2020:178).
Second, the conducted research illustrates that the average percentage of
Bulgarians aged 25–49 years, who participate in professional courses, is 3.2%,
whereas with the age group 25–64 years, the level of participation is lower –
1.48%. When the persons aged 50–64 years are added to the age group 25–49
years, this indicator registers a drop. Thus, it may be concluded that the oldest
workforce group has the lowest participation in qualification training courses.
At the same time, bearing in mind the ageing population in Europe, they are a
significant labour resource. This proves the necessity of developing purposeful
activities focusing on the 50+ persons.
The deepening demographic processes in our country related to low birth
rate, fewer working age persons, and ageing of the workforce, have an
unfavorable impact on all social systems, including the labour market. What is
needed is more efficient and stimulating measures by Bulgarian state
institutions for encouraging active life of elderly citizens. One base document
in this respect is the National Concept of Encouraging Active Life of Elderly
Citizens (2012–2030).
Following this concept is important for meeting the future challenges of
the demographic ageing of the population. The aim is to create conditions that
involve training activities that provide longer-term labour activity for elderly
citizens, high incomes, equal opportunities, and equal participation in economic
and social life.
Third, the analysis presents the average percentage rate throughout the
researched years 2015–2020 of the workforce (1.48%) and those who are
outside the workforce (4.28%) in our country participating in professional
training courses. The results indicate that the second research group, which also
involves the discouraged citizens, shows a higher percentage of participation in
qualification courses. The conclusion is that the development of stimulating
50

Economic Archive 4/2022

activities for integration of the unemployed working age population on the
labour market function positively. “The development of policies and strategies
throughout the last years has led to positive trends in this direction.” (Mancheva,
M., 2020:42) The programmes and measures for activating the non-active
reaches those people. The fact that those persons participate in trainings and aim
to develop their competences is an indicator that they have the necessary
readiness and qualification to find realization on the labour market;
Fourth, the data in Table 1 ascertains that Bulgaria’s population
occupies the last and the penultimate place as regards possessed digital skills.
The state and the employers shall focus their efforts on training programmes of
the working age citizens so that they acquire and enhance their digital
knowledge. Those are mandatory competences which guarantee future
employment, career advancement, and adjustment to the developing professions
on the labour market. The essence of the reorganization of the labour market
lies in better flexibility, security, and life-long learning. The field of vocational
education and training requires significant reforms towards contemporary
training programmes. The development of purposeful qualification courses
depends on the introduction of a system of management of vocational education,
which plays the role of a linking unit between the educational sector and the
demands on the labour market.
Fifth, the acquisition of digital skills among Bulgaria’s population is
practically impossible without building digital networks and comprehensive
access to computer technologies. State institutions and business organizations,
within the context of the Digital Europe programme, shall implement in every
sphere of social life high-technology devices, artificial intellect (AI), computer
services in the cloud, quantum communication infrastructure, etc.
Sixth, the state of most of the small and medium enterprises in the
country, which do not have the necessary financial resources for investments in
innovative technologies and training of human resources, is worrying. The
inability of those organizations to adjust to the new forms of labour and
production processes makes them uncompetitive and hard to defend the
increasing demands of the dynamic economic environment. The European and
national institutions shall accumulate cash flows for Bulgarian enterprises to
provide them with investments in contemporary technologies and educational
courses for people. In addition to what has been mentioned above, there could
be schemes for tax reliefs, providing access to low-interest or non-interest loans,
compensations for some of the production and other costs that shall relieve
economic organizations.
Seventh, the development of artificial intellect and robotics threatens
some of the workforce which can become unemployed, especially those who do
jobs that are to become extinct. The future expects fast rates of economic growth
Economic Archive 4/2022

51

and at the same time a high level of unemployment caused by the replacement
of an unskilled workforce with artificial intellect. The funding of adequate
programmes for training of the workforce is among the preventive measures for
limiting the level of unemployment.
Eight, the acquisition of digital competences shall be combined with the
building of other professional and personal (soft) skills such as: teamwork,
organizational skills, communicativeness, creativity, combination skills,
analytical thinking, initiative, making decisions under stress, listening to and at
the same time defending positions, motivation, desire for growth, improvement,
etc. The above-mentioned skills of the workforce are cognitive skills which are
an especially crucial factor for the competitiveness and professional realization
of the workforce. “Cognitive skills comprise the ability to understand complex
ideas for efficient adjustment to the environment, for learning from
experience/practice, for engaging in various forms of thinking/concluding and
overcoming obstacles/barriers through thinking.” (Atanasova, M., 2020:19).
Ninth, the results of this research confirm that in Bulgaria hourly
employment with both genders is at extremely low level (2020 – 1.7% for men
and 1.8% for women). At the same time, for women in the EU the percentage
is significantly lower – 2020 for women 28.7%, and for men 7.5%. Unlike most
countries in the EU, Bulgarian working women avoid hourly employment. As
one of the main reasons for the poor development of this form of flexible labour
activity we can point out the low payment and restricting social security and
protection. What is necessary is a better regulated legislative framework
regarding the cost of labour and social security, which shall stimulate the
development of hourly employment. It is a suitable form of employment
through the combination of personal and professional life by the woman. The
average level in the EU with women shows that hourly employment has a future
at the Bulgarian labour market as it is motivated and developed more actively
with active policies.
Tenth, the analyzed data in the research hints that temporary contracts
are not a preferred form of employment not only for Bulgarian workforce, but
also for the EU member states. Since the beginning of the COVID-19, remote
work has become one of the most preferred flexible forms for performing a
labour process. Unfortunately, according to data by Eurostat for 2020, our
country ranks last with only 1.2% working from home, followed by Romania
(2.5%), Croatia (3.1%), Hungary (3.6%), Latvia and Cyprus (at 4.5%).
All this gives us a ground to confirm the proposition for continuing work
towards the development of new legislative regulations on the labour market,
which regulate the combination of personal and professional life, including
the coordinated development of remote work, flexibility, and security in an
environment of demographic ageing.
52

Economic Archive 4/2022

In solving those important long-term problems posed by the European
Commission in important European strategic documents, we shall take into
consideration the issues related to:
Firstly, the main advantages of remote work:
• Good practices show that it significantly limits the consumer costs
by employers. The reduction allows investing the funds saved by enterprises in
other profitable activities. Some of them are investments in human capital aimed
at enhancing the professional skills and competences of the workforce. Parallel
to this, there are prerequisites for attracting a highly qualified and competent
workforce with capacity and suitability for remote work, as well as securing
resources for funding and updating the enterprise’s facilities, etc.
• Disadvantaged people are given the chance to have more full-value
employment and a dignified existence. The persons in working age realize their
capacity, the flexibility and security of vulnerable social groups are combined,
labour productivity is increased;
• An opportunity is provided to decrease the losses due to absence
from work when on sick leave, which makes the labour process and labour
performance more efficient. Those who look after children or ill members of the
family can do it along with their professional development;
• Development of higher motivation and satisfaction by the personnel
by creating an environment of better autonomy and self-esteem in planning the
work process, opportunity for creativity, enhancement of organizational skills
and making independent decisions that include higher personal responsibility
and self-control;
• Saving time and limiting the daily expenses in remote modes of
work such as transport, food, refreshments, etc. A significant plus of flexible
employment is the possibility for more free time of the employees, which has
an impact on their psychological equilibrium, the stress and fatigue in the labour
process;
• Last but not least, relieving the traffic in city centers which leads to
decreasing the degree of environmental pollution, etc.
Secondly, the inadequacy of the environment for implementing the
disadvantages of flexibility and security (flexicurity) in employment:
• The outdated legislative framework regulating mainly the “fixed”
nine-to-five employment. We need a new legislative framework for regulating,
control, feedback, and monitoring of flexible employment. We shall apply a
new way of organizing and structuring remuneration and develop flexible bonus
schemes for motivating the personnel. We seriously need a new regulation for
healthy and safe remote work;

Economic Archive 4/2022

53

• We need significant changes in the institutionalization on the labour
market and the social security relations which shall allow adjustability, mobility, social security, and protection of all forms of flexible employment;
• The lack of efficient cybersecurity for personal data protection of the
employees and the intellectual property of the organization;
• With remote work there is often discrepancy between personal and
professional duties, which leads to working a lot more hours, lack of sufficient
rest, and a feeling of dissatisfaction by the employee;
• Remote work leads to loss of personal contact, emotional relationship, verbal communication with the team in the organization. These factors are
a prerequisite for social isolation, worsening of the emotional and psychological
state of the employee, interfering with the unity and the teamwork at the organization;
• For most people who work from home, there is no specific workplace and no suitable work conditions can be provided. This is a prerequisite for
future health problems;
• With remote work, most employees personally cover their work
expenses. They are most often related to providing access to Internet networks,
computer devices, communication connection, electricity costs, etc.
• Research by psychologists shows that “the enormous burden related
to working with technologies leads to chronic fatigue, irritation, and insomnia.”
(Apostolov, V., 2020:13). In addition, there are frequent technological problems
with digital work platforms, with which the employee must deal by him/herself,
which leads to additional stress.
Despite the above-mentioned disadvantages of remote work, this form
of flexible employment will find even wider application in contemporary labour
markets. There has to be improvement of non-standard forms of employment
by ridding of the problems and stimulating this new type of work. The
purposeful functioning of digital networks in social spheres requires three major
components: the first component is effective legislation, which shall encourage
the development of digital technologies and cybersecurity simultaneously; the
second component is the comprehensive and generally available to everyone
digital network; the third component is educated people who have the skills to
work with the fast-developing digital technologies. (https://osha.europa.eu/bg/
emerging-risks/developments-ict-and-digitalisation-work, 2022)

54

Economic Archive 4/2022

Conclusion
The labour market faces serious challenges under the influence of the
world economic and social crisis. To overcome the negative consequences on
the workforce, we shall acquire new knowledge and skills. Building a better
balance between professional and personal life, flexibility, and security in the
work process are the main factors which determine the high productivity in the
country. What we need to do is efficiently apply the concept of “flexicurity”,
which will lead to “… decreasing the insecurity and segmentation on the labour
market, the quality of employment, competitiveness, and labour productivity
will improve, the living standard will change, and so will social harmony, which
will lead to high economic growth.” (Pavlov, N., 2008:57). Corporate social
responsibility will have even more significance for attracting educated, creative,
and motivated human capital in organizations. Without doubt, the world is
changing, and transformations are inevitable for all people who are part of
society. New professions emerge, others change or become extinct. The 21st
century offers opportunities for the development of flexible forms of labour and
possessing high knowledge and skills. They shall comply with the contemporary labour markets, which are even more demanding for the workforce, but
they also provide better opportunities for professional development and vast
capacity in the field of digitalization and artificial intellect.
References
Amending and Adding to the Labour Code Act, State Gazette, issue 82 from 21
October 2011 (Section VIII B, Chapter Five – Additional Conditions of
Remote Work), 2022.
Anna Galik, Monika Bąk, Katarzyna Bałandynowicz-Panfil, Giuseppe T.
Cirella, (2022). Evaluating Labour Market Flexibility Using the TOPSIS
Method: Sustainable Industrial Relations, Sustainability, 10.3390/su
14010526, 14, 1, (526).
Apostolov, V., (2020). Psycho-social Risks and the Stress Related to Work –
Specific Characteristics and Problems, Industrial Relations and Public
Development Scientific Journal, issue 1/2020, p.13.
Arntz, M., Gregory, T. and Zierahn, U., (2016). The Risk of Automation for
Jobs in OECD Countries: A Comparative Analysis. OECD Social,
Employment and Migration Working Papers, No. 189. Paris.
Atanasova, M., (2020). Continuing vocational education of the employed
enterprises – within the context of corporate social responsibility, Research Papers Journalп, volume 3, UNWE Publishing, Sofia, p.19.
Economic Archive 4/2022

55

Dulevski, L., (2021). Human Capital and Investments, Industrial Relations and
Public Development Scientific Journal, issue 2/2021, p.10.
Dulevski, L., (2010). Labour Market, Ciela Publishing, Sofia.
Dulevski, St. (2020). Digital Permanent Establishment, Economic Archive, (4),
pp. 55-75., pp.58-59
Economic and Social Council (2018), opinion on: “The Future of Labour: the
Challenges of the Fourth Industrial Revolution”, Sofia.
European Foundation for the Improvement of Living and Working Conditions,
(2018). New tasks in old jobs: Drivers of change and implications for job
quality,
https://www.eurofound.europa.eu/publications/report/2018/
new-tasks-in-old-jobsdrivers-of-change-and-implications-for-jobquality.
Flexible Forms of Employment and Competitiveness of Bulgarian Enterprises
(2022), https://obuch.info/gvkavite-formi-na-zaetost-i-konkurentospo
sobnostta-na-blgarski.html, 2022.
How technology and globalisation are transforming the labour market.
In:OECD Employment Outlook ( 2017). Paris, France: OECD Publishing, pp. 81–124.
Iida Häkkinen Skans, (2019). Technological change and the labour market,
https://www.riksbank.se/globalassets/media/rapporter/ekonomiskakommentarer/engelska/2019/technological-change-and-the-labourmarket.pdf.
Mancheva, M., (2020). Relevant Problems of Employment for Women,
Industrial Relations and Public Development Scientific Journal, issue
1/2020, p.42.
Manuel Sanchis i Marco, (2020). Flexicurity, Encyclopedia of Quality of Life
and Well-Being Research, 10.1007/978-3-319-69909-7, (1-6), (2020).
Michael McGann, Mary P. Murphy, Nuala Whelan, Workfare redux?, (2020).
Pandemic unemployment, labour activation and the lessons of post-crisis
welfare reform in Ireland, International Journal of Sociology and Social
Policy, 10.1108/IJSSP-07-2020-0343, ahead-of-print, ahead-of-print.
Pandurska, P., (2020). Labour Market, UNWE Publishing, Sofia.
Pandurska, P., (2020). Transformations on the Labour Market Related to Digital
Economy and Industry 4.0, Management of Human Resources in the Age
of Digital Challenges, Proceedings of the International Scientific and
Practical Conference Organized by the University of Economics –
Varna, p. 178.
Pavlov, N., (2008). Labour Markets and Unemployment, Faber Publishing,
Sofia, p. 57.
Schultz, T. (1971). Investment in Human Capital (The role of education and
research). New York: The Free Press.
56

Economic Archive 4/2022

Women in digital scoreboard 2021, European commission, https:// digitalstrategy.ec.europa.eu/en/news/women-digital-scoreboard-2021.
https://ec.europa.eu/eurostat/data/database, 2022.
https://ec.europa.eu/info/strategy/priorities-2019-2024/economy-works-people
/jobs-growth-and-investment/european-pillar-social-rights/european-pil
lar-social-rights-20-principles_bg, 2022.
https:/mlsp.government.bg/uploads/1/lmforecasts-analysis2-bg1.pdf, 2022.
http://ophrd.krib.bg/bg/wpcontent/uploads/Guide_Flex_Time_NOV_2013.pdf,
2022.
https://osha.europa.eu/bg/emerging-risks/developments-ict-and-digitalisationwork, 2022.
https://www.az.government.bg/bg/stats/view/1/332/, 2022.
https://www.cedefop.europa.eu/bg/about-cedefop, 2022.
Desislava Nikolova Koleva-Stefanova is chief assistant professor at the Department of Human Resources and Social Security,
University of National and World Economy – Sofia, Bulgaria. Doctor in
Economics and Organization of Labour. Research interests: in the field
of labour market, education, demographic, and social statistics.
ORCID ID: 0000-0001-8653-8589

Economic Archive 4/2022

57

ECONOMIC ARCHIVE
YEAR LXXV, BOOK 4 – 2022
CONTENTS
Meriem Chafik, Mohammed Nabil El Mabrouki
Opportunities and Challenges of Cross-Border Banking: Focus on Pan-African
Banks /3
Kalina L. Durova
The Impact of Absorbed European Funds on the Economic Growth of Bulgaria
and New Member States /17
Desislava Koleva-Stefanova
The Dynamic Transformations on the Labour Market in Bulgaria in
Conditions of Digital Technologies and Pandemic /37
Rayna Stoyanova Petrova
The Competence-Based Approach Through the Prism
of Academic Training in Management Accounting /58
Ana Borisova Ivanova
The Health Insurance Reform in Bulgaria – Financing Models and Status
Evaluation /79

EDITORIAL BOARD:
Prof. Andrey Zahariev, PhD – Editor-in-chief
Prof. Yordan Vasilev, PhD – Deputy Editor
Prof. Stoyan Prodanov, PhD
Assoc. Prof. Iskra Panteleeva, PhD
Assoc. Prof. Plamen Yordanov, PhD
Assoc. Prof. Svetoslav Iliychovski, PhD
Assoc. Prof. Plamen Petkov, PhD
Assoc. Prof. Anatoliy Asenov, PhD
Assoc. Prof. Todor Krastevich, PhD
INTERNATIONAL BOARD:
Prof. Mihail A. Eskindarov, DSc (Econ) – Financial University under the Government of the Russian
Federation, Moscow (Russia).
Prof. Grigore Belostechnik, DSc (Econ) – Moldovan Academy of Economic Studies, Chisinau
(Moldova).
Prof. Mihail Zveryakov, DSc (Econ) – Odessa State Economic University, Odessa (Ukraine).
Prof. Andrey Krisovatiy, DSc (Econ) – Ternopil National Economic University, Ternopil (Ukraine).
Prof. Yon Kukuy, DSc (Econ) – Valahia University, Targovishte (Romania).
Prof. Ken O'Neil, PhD – University of Ulster (Great Britain)
Prof. Richard Thorpe, PhD – Leeds University (Great Britain)
Prof. Olena Nepochatenko, DSc (Econ) – Uman National University of Horticulture, Uman (Ukraine)
Prof. Dmytro Lukianenko, DSc (Econ) – Kyiv National Economic University named after Vadym
Hetman, Kyiv (Ukraine)
Assoc. Prof. Maria Cristina Stefan, PhD – Valahia University of Targoviste (Romania)
Assoc. Prof. Anisoara Duica, PhD – Valahia University of Targoviste (Romania)
Assoc. Prof. Vladinir Klimuk, PhD – Baranovichi State University, Branovic (Belarus)

Support Team

Rositsa Prodanova, PhD – Technical Secretary
Anka Taneva – Bulgarian Copy Editor
Ventsislav Dikov – Senior Lecturer in English – Translation from/into English
Petar Todorov, PhD – Senior Lecturer in English – Translation from/into English
Editorial address:
2, Emanuil Chakarov street, Svishtov 5250
Prof. Andrey Zahariev, PhD – Editor-in-Chief
 (++359) 889 882 298
Rositsa Prodanova, PhD – technical secretary
 (++359) 631 66 309, е-mail: nsarhiv@uni-svishtov.bg
Blagovesta Borisova – computer graphic design
 (++359) 882 552 516, е-mail: b.borisova@uni-svishtov.bg
In 2022, the journal will be printed using a financial grant from the Scientific Research Fund –
Agreement № КP-06-NPZ-69 from Bulgarska Nauchna Periodika – 2022 competition.
© Academic Publishing House “Tsenov” – Svishtov
© D. A. Tsenov Academy of Economics – Svishtov