The Labor Market and Opportunities for Young People Take Center Stage at the Meeting of Economic and Social Councils in Sofia

Challenges facing the labor market, policies for young people, economic growth and competitiveness, as well as the impact of artificial intelligence on employment and the transformation of economies, were among the main topics of the tripartite meeting between the Economic and Social Councils of Bulgaria, Spain, and Portugal. The forum took place on May 28 and 29 at the National Assembly building in Sofia, hosted by Bulgaria.

The two-day event was attended by Ivan Angelov, Deputy Speaker of the National Assembly; Natalia Efremova, Minister of Labor and Social Policy; Yordanka Chobanova, Head of the European Commission Delegation to Bulgaria; Luís País Antunes, President of the Economic and Social Council of Portugal; and representatives of the Economic and Social Council of Spain. The Bulgarian ESC was represented by ESC Chair Zornitsa Rusinova, the Council’s vice chairs and members, as well as representatives of employers’ organizations, trade unions, the academic community, and the civil society sector from the three countries. The ambassadors of the Republic of Portugal and the Kingdom of Spain also attended the meeting.

The participants agreed that Bulgaria, Spain, and Portugal face similar socioeconomic challenges related to population aging, a shortage of skilled workers, regional imbalances, inflationary pressures, and the need for accelerated adaptation to the green and digital transitions. Particular emphasis was placed on the impact of artificial intelligence and automation on the labor market, which are changing the structure of employment and requiring new skills, reskilling policies, and more active lifelong learning.

Right from the start of the discussions, key topics were identified, such as citizens’ incomes and purchasing power, collective bargaining, the competitiveness of economies, energy security, as well as the imbalances and high prices in Europe’s electricity markets, which place additional pressure on industry and economic development in the region. In this context, participants also discussed inflationary pressures, noting that inflation reduces citizens’ purchasing power and undermines business competitiveness, as it makes pricing increasingly difficult to predict. The issue of approaches to curbing inflation—through fiscal policy, consumption, and wage dynamics—was also raised.

Representatives of the three councils emphasized that social dialogue and the active participation of organized civil society are key to finding sustainable solutions in the context of rapid economic and technological change. There is a need to better align education with the actual needs of the labor market, as well as to invest in digital and technological skills.

Particular attention was paid to policies for young people and the various national perspectives—significant youth migration in Portugal—nearly 100,000 people per year, regional disparities in employment in Spain, and the need for better alignment between education and the labor market. In Bulgaria, on the one hand, there is a labor shortage, while on the other, 130,000 young people are neither in school nor employed. This high rate of 13.8% ranks us second in Europe after Romania. Long-term strategies are needed in this area—in addition to being a major problem for the Bulgarian labor market, it is also a demographic problem, because young people with low incomes face two options—not starting a family or emigrating, as became clear during the discussion. It is precisely low incomes and limited opportunities for self-fulfillment that remain among the main causes of emigration among young people, the meeting participants noted.

During the forum, participants also discussed the role of economic and social councils in shaping policies related to the labor market, young people, and economic growth. ESC Chair Zornitsa Rusinova emphasized that the Council’s resolutions are adopted by consensus, which is particularly important for ensuring a balance in the recommended policies and measures and for the representation of each of the three groups before the institutions. During the official opening ceremony, Minister of Labor and Social Policy Natalia Efremova highlighted the importance of social dialogue and the work of an organized civil society. The Head of the European Commission Delegation to Bulgaria, Yordanka Chobanova, emphasized the need for policies to be people-centered, with economic competitiveness and social justice considered within a single framework.

Sustainable solutions require a strong civil society and policies that are as closely aligned as possible with the actual needs of citizens. There is also a shared intention to foster closer cooperation between the economic and social councils of Bulgaria, Spain, and Portugal and to continue exchanging best practices on key issues on the European agenda.

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