Although most employment is in the services sector, the manufacturing sector also accounts for a relatively large share of employment in Croatia - including industries such as shipbuilding, food processing, pharmaceuticals, timber etc. The economy is undergoing a restructuring process - characterised by sectoral shifts in employment, the privatisation of some public services, and public sector reform – all of which affect the demand for employment and skills.
Over the period to 2025, employment is projected to remain around its 2008 pre-crisis level, with most employment growth in construction and business and other services. Most job opportunities opening over this period will be in elementary occupations.
In the medium-term future, Croatia is forecast to experience an increase in demand for high- and low-skilled workers, and an increase in demand for medium-skilled workers to a lesser extent. Meanwhile, the share of Croatia’s labour force with high or medium level qualifications is projected to riseby 2025, whilst the share of workers with low or no qualifications decreases.
Croatia’s working-age population (15-64) is projected to decline in the period to 2025, with labour market participation set to increase but remain below the EU28 average. Looking to the future, Croatia’s old-age dependency ratio is expected to rise, passing the EU average by 2060.