An expert team of the Bulgarian Industrial Association (BIA), in cooperation with sectoral and regional partners, has published new labour market analyses, with a focus on the strategic sector “Manufacture of plastic products”.
The analyses were developed within the project “Together for Sustainable Employment”, funded under the Human Resources Development Programme, and cover six economic sectors and five regions – Burgas, Vratsa, Dobrich, Smolyan and Shumen. Their objective is to support the development of evidence-based policies and positions on employment, industrial relations, digitalisation and the green transition.
The analysis for the “Manufacture of plastic products” sector was prepared with the support of the Bulgarian Plastics Association (BAP), which actively contributed to presenting the industry’s perspective and identifying the key challenges faced by companies.
The “Manufacture of plastic products” sector (NACE Rev.2, group 22.2) stands out for its structural importance to the Bulgarian economy. It accounts for approximately 4.4% of manufacturing output and around 1.5% of the total production of all non-financial enterprises. Plastic products are widely used across industries – from packaging in the food and pharmaceutical sectors to components for automotive, electronics, construction, agriculture and energy, making the sector a key supplier within value chains.
According to the National Statistical Institute, 1,432 enterprises operated in the sector as of 2023, representing a decrease of nearly 10% compared to 2019. Large companies remain stable and continue to invest, while small and medium-sized enterprises face increasing pressure from energy costs, raw material prices and regulatory uncertainty related to EU requirements on packaging and the circular economy. Despite the sector’s development, the trade balance remains negative – imports reached EUR 2.08 billion compared to exports of EUR 1.38 billion in 2024.
At the same time, the sector demonstrates steady economic growth. The value of production increased by around 30% over the period 2019–2023, while value added rose by 42%. Investments have also grown, with spending on tangible fixed assets increasing by around 30% and foreign direct investment by 40%, primarily directed towards automation, robotics and the implementation of green technologies.
However, the labour market remains a key challenge. Although the average monthly wage in the sector increased by around 50% (from approximately BGN 1,020 in 2019 to BGN 1,530 in 2023), it remains at about 78% of the average for the real sector. This, combined with the production-oriented nature of the activities, reduces the sector’s attractiveness to young people and deepens the labour shortage.
The analyses also highlight a broader trend of workforce ageing. Data for the period 2020–2024 show an increasing share of employees aged 55+ and a declining number of young workers, indicating a risk to the sector’s future workforce sustainability. The replacement ratio points to a potential labour shortage in the medium term.
A significant contribution to the research comes from empirical interviews with business representatives – managers, owners and HR specialists. These findings point to labour shortages as the result of long-standing mismatches between education, economic needs and the social environment, and underline the need for closer cooperation between industry and the education system.
The full text of the analysis for the “Manufacture of plastic products” sector is available HERE.