Shortage of labour in the construction industry
Traders, builders and customers report price growth in building materials. In the past six months alone, the sector has seen an increase of nearly 40%.
Against this backdrop, it is also becoming increasingly difficult to find workers for construction and repair work, and available workers in the country are now looking for wages similar to those in Western Europe.
Krasimir is renovating his apartment in Blagoevgrad. Due to the higher costs of materials and labour, his bill will be twice as high as initially planned.
"There is a drastic increase in the prices of construction materials, cement, and plaster. I see the prices—they are rising quite a lot, from 18 BGN per square metre for tiles to 24, 25, and even 30 BGN. A few years ago, the same sizes were priced at 18 BGN," said Krasimir Katsarski.
Despite the rise in construction material prices, merchants from the industry report that prices in Bulgaria remain lower compared to Western European countries.
"There is a price increase, but it’s not drastically large, although there has been a rise, particularly in the housing sector, as many homes are being sold. In Bulgaria, there is no local production; until we learn how to work better, it will always be expensive for us," added Vasil Bayraktarski, a construction material merchant in Blagoevgrad.
The problem with quality labour in construction is also significant, according to sector reports. Many experienced workers work abroad, and those who return are seeking salaries similar to those they received in countries like Germany, France, and Austria.
"There is a shortage of labour in Bulgaria, not only in construction but in many other sectors as well. Importing labour is not possible because most of the workers who could be brought in do not speak Bulgarian, so communication would be difficult. For the first time, there is a reverse trend of people returning to Bulgaria, even construction workers, because the prices for construction services are now European-level," said Spas Mitev, a construction worker.
In recent years, cheaper construction materials have been imported from Turkey. More and more builders from our southern neighbor are also arriving, working for lower wages than Bulgarian workers, according to the construction industry in the Southwestern region.