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The growth in work permits in Croatia: causes, trends, and implications.
In 2024, Croatia issued a record number of work permits, significantly increasing the total compared to the previous year. By the end of October, 171,000 permits had been issued, marking a 14% increase compared to 2023. This number is expected to reach 200,000 by year-end, setting a historical milestone.
The primary sources of labor remain the Western Balkans (Bosnia and Herzegovina, Serbia, North Macedonia) and more distant regions such as Nepal, India, and the Philippines. Approximately 10,000 workers also arrived from EU countries.
According to Boris Vujčić, Governor of the Croatian National Bank, around 50,000 new jobs were created in Croatia in 2024. Employment growth has been particularly tied to the expansion of hospitality, healthcare, and construction sectors. However, most construction vacancies are already filled, except for specialized projects like post-earthquake reconstruction.
Most In-Demand Jobs
Based on job vacancy indices, the following professions are the most sought after:
Sales personnel
Chefs
Waitstaff
Warehouse workers
Drivers
The Croatian Employers’ Association highlights that industries such as construction, tourism, hospitality, and retail heavily rely on foreign workers. This dependency is driven not only by the increase in job openings but also by a demographic crisis. Croatia’s population is expected to decline by 100,000 in the coming years, amplifying the need for foreign labor.
Regional Dynamics
Particular focus is on Southern Adriatic, where labor shortages are less pronounced due to the influx of migrants. In contrast, Central Croatia faces significant challenges in filling vacancies.
Economic Impact of Foreign Workers
Foreign workers play a pivotal role not only in Croatia’s economy but also in their home countries. In 2023, the volume of remittances sent abroad from Croatia exceeded €1 billion, including:
€68.5 million sent home by Nepalese workers, double the amount in 2022.
€787 million transferred to Bosnia and Herzegovina, Serbia, Nepal, India, the Philippines, and North Macedonia in the first nine months of 2023.
From 2021 to September 2023, total remittances reached €3 billion. Simultaneously, Croatia received €5.61 billion in remittances from other countries, equivalent to 7.2% of the national GDP, according to Eurostat.
Challenges Ahead
Croatia is experiencing an unprecedented surge in labor migration, addressing its internal workforce shortage. However, this dependency on foreign labor brings several long-term challenges:
Demographic Crisis: The ongoing population decline increases reliance on migrants, potentially leading to excessive dependency on external resources.
Social Inequality Risks: Integrating foreign workers demands substantial social policy efforts to prevent labor market segregation.
Economic Vulnerability: The volume of remittances leaving Croatia highlights significant capital outflow.
Strategic Response Needed
To achieve sustainable development, Croatia must adopt a balanced approach that includes stimulating local labor potential, improving conditions for migrant workers, and strategically addressing demographic and economic challenges.