TRANSFORMATION IN BULGARIAN LABOR MARKET IN THE YEARS OF TRANSITION

Abstract

The paper examines the dependency of labor market on positive and negative effects of cyclic recurrence and economic development. Probable scenarios of the dynamics in employment and unemployment in dependence of changes in gross domestic product (GDP) and productivity in conditions of recession and following the start of economic revival are analyzed in accordance to the open character of Bulgarian economy and the specificity of Bulgarian model of transition predetermined by the impacts of outer influences and additional inner ones on the labor market, which verification is on the basis of the data for state-of-art of labor market in years of transition to market economy. The factor predestining the level of unemployment are investigated on the basis of input flows unemployment relating to macroeconomic and other outer measures, as well as the impact which would lead to decrease in the average duration of unemployment. The accent is on the necessity of establishment of a consecutive and sustainable strategy of economic development having a clear vision about the structuring of economy and labor demand in middle-term aspect, as founding in the flexibility of labor market and employment in the country.