Countries like Croatia are facing demographic challenges, making them increasingly dependent on labor imports.
Domestic labor potentials do not meet all the requirements of the labor market, thus opening up space for the employment of foreign workers.
Current situation of the labor market
The current labour market situation in Croatia is characterised by labour shortages in several key sectors, including construction, tourism and healthcare. Despite the measured steps towards automotive regions, the need for specialists in the above areas remains high, creating pressure on employers to look for workers outside the state's borders.
As the growing economy generates new jobs, the challenge of filling those jobs becomes evident. Foreign workers, therefore, represent a key segment in filling the gaps in the Croatian labour market, especially in view of emigration rates and low natural growth rates. The need to bring in foreign workers is expected to increase further, in response to the gradual decline of the domestic able-bodied population.
The need for foreign workers
Croatia faces a shortage of domestic labour, especially in sectors such as construction, tourism and IT industry. By relying on foreign workers, employers have the opportunity to benefit from international knowledge and skills.
In the context of demographic challenges, the reduction in the number of working age population in Croatia requires strategic planning. The importation of workers becomes an indispensable element of maintaining economic growth and competitiveness in the market.
By 2030, a labor deficit could affect one in five jobs.
Strategic hiring of foreign workers could mitigate negative trends and contribute to innovation. By fostering a multicultural environment, companies gain the opportunity to connect internationally and strengthen their competitive position in the global market.
The most sought-after professions
In the construction sector, the demand for skilled workers is growing continuously, due to major infrastructure projects and urbanization. Occupations such as bricklayers, carpenters and armorers are becoming increasingly deficient.
The IT industry notes the need for software engineers and programmers. Employment growth is expected in the field of artificial intelligence and cybersecurity.
In tourism and catering, chefs, waiters and receptionists are in demand, especially during the tourist season. The importance of this sector requires a constant refreshment of the workforce.
The medical sector emphasizes the need for specialist doctors and nurses. The global COVID-19 pandemic has further highlighted this need.
In agriculture, the demand for skilled workers in food production is particularly pronounced, and seasonal jobs in picking and processing are becoming more and more in demand due to the growth of export-oriented economies.
Finally, the renewable energy sector is increasingly looking for engineers and technicians due to the transition towards a green economy. A focus on sustainability creates new jobs.
Legal framework
Croatia is continuously adapting its legislation.
With the adoption of new regulations, the process of hiring foreigners is facilitated. The aim is to attract a skilled workforce beyond the borders of the European Union, thereby stimulating economic development. One of the tools to achieve this objective is the introduction of quotas for the employment of foreign workers, which are revised annually.
Employment is regulated by the Law on Foreigners.
The procedure for obtaining a work permit is complex - from assessing the labor market to issuing a visa. The legal framework requires cooperation with the Croatian Employment Agency, as a key player in the process.
Employers must comply with the rules on minimum working conditions.
The Law on Foreigners clearly defines the conditions under which foreign workers can be employed. It also provides the basis for creating a stimulating environment for the arrival of specialists. After Croatia's entry into the Schengen zone, certain changes are also expected that could have a positive impact on the influx of labor.
Effects of digitization
The digitalization of the workforce is a significant factor shaping global employment trends, including in Croatia. The introduction of technological innovations in work processes can result in an increase in the need for IT specialists, but also provide opportunities for remote employment, which transcends borders. Adaptation to digital tools is becoming an imperative of modern business, which is why it is expected that by 2030 the demand for digitally literate workers will increase significantly.
New forms of employment
The development of technology is constantly changing the labor market and introducing new models of employment.
The increase in the freelance economy leads to greater flexibility for both employers and workers.
The introduction of job sharing platforms allows employers to quickly connect with the international workforce.
Remote work, or “remote work,” is becoming an increasingly accepted form of engagement, making geographic distance irrelevant.
Digital nomadism opens up Croatia's potential as a destination for attracting global talent.
Impact on labor demand
Demographic trends indicate a decrease in the working age population within Croatia. This directly increases the need to import foreign labor.
The tourism and construction sector is particularly feeling this pressure.
Long-term and seasonal employment is increasingly dependent on workers outside the country's borders, especially from EU Member States and third countries. The continuation of the trend of global worker mobility will have a major impact on employment modalities in these industries.
Given the growing need for specific skills, there is an increase in interest in specialists in STEM fields (science, technology, engineering, mathematics). The potential of recruiting specialists in these fields is recognized, which opens up space for intensifying the program of attracting and retaining highly qualified foreign labor.
Demographic factors
Demographic decline and ageing of the population are key elements shaping the labour market in Croatia. A low birth rate with a high emigration quota reduces the number of the working-age population, creating a shortage of labor for market needs. In this context, the employment of foreign workers becomes not only desirable, but also economically necessary for the sustainability of the business.
There is a marked tendency for economic growth to depend on the influx of skilled labour from abroad. By 2030, projections indicate an increased need for foreign workers in sectors such as IT, healthcare, construction and tourism. Intensifying programs to attract foreign labor and establishing more efficient integration processes will be imperative for the Croatian labor market in order to compensate for the demographic deficit.
Outflow of domestic workers
The outflow of domestic workers represents a long-term challenge for the Croatian labor market, with a tendency to grow until 2030.
- The European labour marketTravel within the EU makes it easier for workers to leave.
- Higher wages and better working conditions— More attractive working conditions abroad act as a strong incentive to leave.
- Education and SpecializationProfessional training often leads to employment abroad.
- Demographic factors— The ageing of the population and the low birth rate contribute to the reduction of the domestic workforce. The higher outflow of skilled workers puts pressure on domestic employers.
Taking measures to retain the domestic workforce becomes imperative in the recruitment strategy.
Attracting skilled migrants
Croatia faces the challenge of attracting skilled foreign workers in key sectors.
The strategic approach includes the development of incentive migration policies and work permits to effectively attract and retain talent.
Improving working conditions, increasing wages and developing professional training are key to attracting specialists.
Developing countries, such as Croatia, are increasingly recognizing the need to internationalize the labor market in order to become more competitive.
Investing in educational institutions and creating partnerships with the origin of skilled migrants paves the way for long-term integration.
Predictions for 2030
According to trend analyzes and demographic projections, by 2030 Further growth in demand is expectedfor foreign workers in Croatia, especially in sectors such as construction, tourism and IT industry. Taking into account the envisaged technological progressand digitization, preference will be given to workers with a high level of specialist knowledge and skills adapted to future market requirements.
Recruitment strategies will need to be adapted to maximise the attraction of a skilled workforce, with a focus on flexible work permitsand Establishing an attractive living environment. The integration of foreign employees will become the primary goal in order to ensure their long-term attachment to the Croatian labour market.
Sectoral Employment Projections
Given current trends, specific sectors will dominate the demand for foreign workers by 2030.
- Construction:Steady growth in housing and infrastructure construction.
- Tourism:The need for qualified personnel in the catering and hotel industry.
- Information Technology (IT):The growth of the need for specialists in software development and cyber security.
- Healthcare:Expected deficit of domestic medical specialists.
- Agriculture:Seasonal work and specialized agrotechnical skills.
Advances in technology will stimulate the demand for new knowledge and specializations.
The structure of the workforce will be dynamic, requiring rapid adaptation of the educational system and professional development.
Workforce integration policies
Effective integration of foreign workers is a key aspect of the competitiveness of the Croatian labour market.
- Language and Culture:Programs for learning the Croatian language and getting to know the culture.
- Adaptation of the working environment:Flexibility of workplaces with respect to different cultures and customs.
- Legal aid:Support in understanding and complying with legislation.
- Social integration:Focus on the inclusion of workers in the local community.
- Professional Development:Access to education and training opportunities
Emphasis is placed on flexible working conditions and a stimulating environment.
A responsible policy towards foreign workers fortifies the foundations for sustainable economic growth and development.
How a recruitment agency for foreign workers helps
Agencies are key players in hiring foreigners.
With the adoption of a delegated employment model, Croatian employers leave the selection and administration process to recruitment agencies. This allows faster access to skilled foreign workers, making the recruitment process efficient and less demanding for employers. The ability of agencies to recognize labor market trends ensures timely filling of vacancies.
Agencies advise on legislation and permits.
By dealing with the complexities of migration policy, agencies help employers reduce the risk of legal complications. They provide assistance with work visas and residence permits, which is particularly important in view of the changes regulated by national legislation and European legal norms.
Agencies reduce the administrative burden on companies.
In cooperation with agencies, employers can expect a reduction in costs associated with recruitment, and a more efficient process of integration and adaptation of workers. This support will be particularly significant in the context of the projected demographic changes and the growing need for foreign labour in Croatia by 2030.
