June the 12th, 2026 – Croatia has just hit record employment levels as the country’s cyclical summer hiring accelerates, with only 61,000 people registered as unemployed at the end of May.
As is the norm each and every year at this time, Croatia has officially entered the busy summer season with record employment figures and historically low unemployment. As expected, tourism and seasonal hiring continue to drive demand across large parts of the economy.
According to the latest figures released by the Croatian Employment Service (HZZ), registered unemployment fell again in May, reaching the lowest level recorded since modern labour market tracking began. At the same time, employment continued to grow as businesses increased recruitment ahead of the peak tourist season.
The figures reflect a trend that has become increasingly familiar in recent years: Croatia’s labour market is tightening at the same time as employers report growing difficulties finding workers.
Tourism remains the biggest driver by far, with other related industries orbiting around it both directly and indirectly.
Hotels, restaurants, accommodation providers, and hospitality businesses recorded some of the strongest hiring activity, supported by seasonal demand along the Adriatic coast. Retail and manufacturing also contributed to employment growth as businesses prepared for increased economic activity over the summer months. At first glance, the numbers appear overwhelmingly positive.
Croatia spent a great many years dealing with persistently high unemployment, particularly following the global financial crisis and during periods of economic restructuring. Today’s labour market tells a very different story — one of expanding employment opportunities and stronger economic activity. However, not so far beneath the headline figures, a more complicated picture is emerging. Many employers say the challenge is no longer creating jobs but filling them.
Across tourism, construction, logistics, and service industries, companies increasingly report shortages of available workers. As a result, Croatia has become more dependent on foreign labour to sustain growth and maintain seasonal operations. Workers from distant Asian countries including Nepal, India, the Philippines, and of course from neighbouring Bosnia and Herzegovina have become an increasingly visible part of the labour market, particularly during the bustling summer season. At the same time, demographic pressures continue to shape the economy.
Croatia’s rapidly ageing population, lower birth rates, and long-term emigration trends mean the domestic labour pool is under intense pressure even during periods of strong employment growth. For some sectors, labour shortages are becoming a structural issue rather than a temporary seasonal problem. Economists often point out that low unemployment alone does not necessarily tell the whole story.
Questions remain around productivity, wage growth, housing affordability, and whether current labour market conditions can support long-term economic competitiveness. For younger workers in particular, rising living costs continue to influence decisions about where and how they work. Still, the latest employment data signals that Croatia enters the summer season in a strong position. Businesses are hiring, unemployment remains historically low, and economic activity continues to accelerate.
The challenge now may be less about creating jobs and more about ensuring there are enough people to do them without having to constantly import labour from abroad.
