Half a Million Working-Age Croatians Apparently Uninterested in Employment?

Updated Post:

May 1, 2025 - Over Half a Million Working-Age Croats Idle While Employers Struggle

Employers in Croatia are finding themselves in a bind due to a startling statistic - around 500,000 working-age Croatians are neither working nor actively seeking employment. This number is close to the number of employed people, creating a pressing dilemma for the domestic labor market.

As Poslovni Dnevnik/Josipa Ban writes, the reason for this predicament seems to be more complex than apparent at first glance. The economically inactive population in Croatia is a diverse group, necessitating a series of well-crafted and consistent measures to reactivate them.

The share of employed Croatians has risen over the past decade, from 43% in 2014 to 51% in the previous year. On the contrary, the share of economically inactive people has fallen slightly, from 47% to 46% during the same period, according to the Labour Force Survey of the Central Bureau of Statistics.

Email: *

The Enigma of Working-Age Inactivity

The surprising high rate of working-age Croatians not participating in the job market can be attributed to a combination of factors, including demographic changes, mismatches between education and the labor market, and inadequately adjusted social and economic policies.

First name:

To tackle this problem, policy changes necessitate including people from all age groups and social classes, starting from young people, women, to the elderly and individuals with disabilities.

Early Retirement in Croatia

Last name:

One group responsible for much of the inactive population is the over-65s, who account for 55 percent of this demographic. However, there is potential for their economic activation, given the presence of over half a million working-age Croatians avoiding the labor market.

Education and Disconnect

Gender:

Statistics also reveal that the number of highly educated inactive Croatians has increased by 4.2% to 13.5% over the past decade. Meanwhile, the share of those with vocational education, who make up the majority of the inactive population, has increased by 4.3%. This phenomenon can be attributed to a mismatch between the education system and the labor market, as well as reluctance to adapt to new roles.

Male Female

Paths to Activation

Several solutions exist to activate the economically inactive, with a focus on retraining, providing incentives, and improving support systems for various age groups and abilities. This includes vouchers for skill acquisition, greater encouragement of lifelong education, and enacting work-related changes to the social benefits system. Incorporating measures to support women through family policies, such as expanded childcare and flexible work options, could also contribute to increasing women's economic activity, generating benefits for both individuals and the broader society.

Country:

Taking Action: Empowering Croatia's Workforce

To address the issue of significant working-age Croatian inactivity, strategic reforms that cater to diverse needs and ensure consistency across measures must be implemented. By targeting young people, women, the elderly, persons with disabilities, and promoting lifelong learning, Croatia has the potential to unlock the vast potential within its economy, fostering a more cohesive society and improved quality of life.

Birthday:

Don't miss our newsletter![subscribe]

Related posts:

HZZ: Nearly 160,000 Jobless People in Croatia at End of December
EU Unemployment Stable in January, Croatia Below EU Average
3 in 4 Croats Aged 20 to 64 to be in Work Under 2030 Employment Target
April Sees 1.2% Fewer Jobless YOY

The high rate of working-age Croatians not participating in the job market can be attributed to a combination of factors, including demographic changes, mismatches between education and the labor market, and inadequately adjusted social and economic policies, as addressed in the general news article on "The Enigma of Working-Age Inactivity."
Agreeing on policy-and-legislation changes to address this issue requires inclusion of people from all age groups and social classes, starting from young people, women, to the elderly and individuals with disabilities.
In 2030, it is projected that 3 in 4 Croats aged 20 to 64 will be in work, as suggested in the related post, "3 in 4 Croats Aged 20 to 64 to be in Work Under 2030 Employment Target."
Vocational education plays a significant role in the inactive population, with the share of those with such education increasing by 4.3% over the past decade, according to statistics from the education sector.