The ILO in Croatia

Croatia has been a member of the ILO since 1992 and has ratified 9 out of 10 fundamental conventions and all priority governance conventions. The last ratification was in 2020 and concerned the Tripartite Consultation (International Labour Standards) Convention, 1976 (No. 144).  

Labour market situation 

In a landmark development, Croatia joined the EU Schengen area and adopted the euro on January 1st, 2023, completing the integration progress after its accession to the EU in 2013. This has boosted its tourism industry, which has a typical contribution to GDP of 25% and accounts for a similar share of employment. 

The Croatian economy is gradually catching up with the rest of EU. The country’s GDP per capita stood 24% below the EU average in 2023 (Eurostat, 2024), compared to 38% ten years ago. Real GDP growth was 3.1 per cent in 2023 and is forecasted at 3.3 per cent in 2024 (EIU, 2024). 

Favourable economic results have translated into notable progress on the Croatian labour market. In 2022, the employment rate increased to 64.9%, despite remaining below the EU average of 69.8% (Eurostat, 2023). Unemployment is at historically low levels, having fallen from 17.3% in 2013 to 6% in 2023 (Eurostat, 2024). Nevertheless, the gender gap remains significant as only 46% of women were actively participating in the labour market in 2022 compared to 58% of men (ILOSTAT, 2024). In 2022, 18% of the youth were unemployed (ILOSTAT, 2024) and this rate is higher among young women (22.7%) than young men (14.8%). In addition, the share of youth not in education, employment or training (NEET) remained above the EU average in 2022 (14.4% against 12.8% in the 15-29 age group).   

The shrinking population due to low birth rates and continued emigration is driving labour shortages, which are already pronounced in the construction and service sectors.  

Cooperation between the ILO and Croatia 

The ILO has assisted Croatia in its economic and labour market transformation and in its accession to the EU in 2013. Main areas of work included social dialogue, collective bargaining, labour law, social protection, employment policies, fair migration, and local economic development. 

Since then, the cooperation has focused on specific technical requests from Croatia, such as transition from the informal to the formal economy or compliance with International Labour Standards. 

 Text last edited on 04/2024