Foreign investors complain of skilled labor shortage and inefficient administration

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The biggest risks for the development of foreign investment companies in the country are the lack of skilled labor, legal uncertainty and predictability of economic policy, inefficiency of public administration, insufficient administrative care and support at the operational level, as well as non-fulfillment of promises and contractual obligations by the state. This is shown by the survey conducted by the Council of Foreign Investors at the Chamber of Commerce in which 75% of respondents said they would invest again in the country.

The survey conducted in the first half of November this year includes answers to 72 percent of surveyed manufacturing companies located in and outside TIDZs in all planning regions of the country, mostly companies in the automotive industry that last year together had a total of 20,700 employees. The poll was presented by Viktor Mizo and BorijanBorozanov, President and Vice President of the Association of Foreign Companies with Technologically Advanced Production.

Regarding the achieved results in the current year, over half of the respondents or 54% noticed a decrease in the volume of planned production and exports between 10-35%, as a result of reduced orders from abroad, lack of raw materials and obstacles to the normal flow of transport. Despite this decline in production volume, the number of employees remained relatively stable with a decline of only 1.7 percent.

In the labor market, companies have the most difficulty in obtaining engineering and technical staff, and the easiest access to administrative staff. The reasons for the lack of labor force are: the outflow of staff abroad, insufficient practical experience and knowledge and inadequate vocational education of the potential labor force in the labor market and low mobility of labor force willing to work outside the capital.

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