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Our latest report on cost of labor sees Plovdiv labor 25% cheaper than Sofia.
submited on 28.10.2006 in category Regulated markets | Macroeconomic developments | Political stability | Fiscal affairs | Monetary policy | Regulated markets | Privatisation | Macroeconomic developments
submited on 28.10.2006 in category Regulated markets | Macroeconomic developments | Political stability | Fiscal affairs | Monetary policy | Regulated markets | Privatisation | Macroeconomic developments
A new feature of the regular report on cost of labor “Biggest Cities Review” – a joint research with the survey agency “Vitosha Research” – is the regional comparison between the wages of the medium skill-set workers. Medium-skill set refers to the job positions which require certain skills and abilities (but no specialized knowledge) such as language, age, quick learning, etc. They are normally such that workers can fairly freely change positions between and within industries as long as they are eager to acquire new for them and useful for the company knowledge.
Sofia offers the most expensive labor for medium skill-set position. Other big cities fall far behind offering much cheaper labor for such positions. Even in Varna and Burgas where basic labor is close in price to the one in Sofia, wages for medium skill-set positions are by more than a quarter lower than Sofia.
The latest survey confirms results from the previous three issues, that Sofia offers the most expensive basic (unqualified) labor. The closest cities by that indicator are the major cities at the seaside – Varna and Burgas, where basic labor is about 10% cheaper than the capital city. In the second-biggest city Plovdiv, labor is about 25% cheaper than in Sofia.
The bigger part of the explanation of the labor cost differences lies in the discrepancy in terms of labor productivity. It is consequently relatively more expensive to hire labor in cities with more accumulated capital and respectively more productive jobs. However one has to keep in mind the different levels of international exposure of the regions, which raises labor demand either through the outbound tourism (such is the case for example of the city of Burgas) or through commerce (such is the case of Haskovo).
Sofia offers the most expensive labor for medium skill-set position. Other big cities fall far behind offering much cheaper labor for such positions. Even in Varna and Burgas where basic labor is close in price to the one in Sofia, wages for medium skill-set positions are by more than a quarter lower than Sofia.
The latest survey confirms results from the previous three issues, that Sofia offers the most expensive basic (unqualified) labor. The closest cities by that indicator are the major cities at the seaside – Varna and Burgas, where basic labor is about 10% cheaper than the capital city. In the second-biggest city Plovdiv, labor is about 25% cheaper than in Sofia.
The bigger part of the explanation of the labor cost differences lies in the discrepancy in terms of labor productivity. It is consequently relatively more expensive to hire labor in cities with more accumulated capital and respectively more productive jobs. However one has to keep in mind the different levels of international exposure of the regions, which raises labor demand either through the outbound tourism (such is the case for example of the city of Burgas) or through commerce (such is the case of Haskovo).
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