It was initiated on June 21, 1945, only six weeks after the war in Europe had ended. This was a male-dominated time with lots of male heroes. A muscleman as seen on war memorials is converted on the order into a labor hero by replacing his weapons with the symbols of labor. Nobody at that time seems to have thought of the possibility that a woman might become a labor hero.
The women proved them wrong. The figure below shows a 1st Class Peoples Labor Order awarded to a woman. Bulgaria had the tradition of using a bow on orders for women and not the regular suspension (kind of sexist also). Since old habits die slowly, the Peoples Labor Order was issued with a bow but without a fastener. Women have safety pins, don't they?
It took the authorities more than 30 years to realize that their Labor Order was sexist, and they finally changed to a neutral design.
The original male/female ribbons were very much phased out due to the first batches running out and the Type 2 universally replaced the older styles within 15 years although some were awarded a good time earlier than that. Recipients could also replace the suspension themselves if they chose to.
As with many other Bulgarian awards of the time when they were "constructed" the ribbon was put on any which way round.
The additional loop in the suspension being an affectation left over from the "Regency" period when the Crown often used to suspend Medals and Orders was replaced with a wreath.