The Croatian labour market in 2025 is facing significant challenges: while the number of foreign workers is growing, new regulations are making their employment more difficult, and a large number of domestic working-age citizens remain outside the labour force.
This situation especially affects the tourism and hospitality sectors, which rely on seasonal jobs and rapid mobilisation of the workforce.
Labour Market Conditions in Croatia
The Croatian labour market is in a paradoxical situation: employers are struggling to find workers, while nearly half a million working-age citizens are not seeking employment at all. According to the Croatian Bureau of Statistics, in 2024, there were 1.517 million inactive persons—almost equalling the 1.684 million employed individuals.
A major concern is that over 500,000 of these inactive individuals are between the ages of 20 and 64. The reasons vary—from early retirement and health issues to a lack of trust in the Croatian labour market and a belief that there are no suitable jobs available.
Start of the Season and Employer Challenges
Croatia’s tourism and hospitality seasons rely heavily on seasonal and foreign workers. However, new regulations that came into effect at the start of the year are complicating matters. The new Aliens Act stipulates that legal entities must demonstrate a monthly turnover of €10,000 over the previous six months to be eligible to hire foreign workers.
For many seasonal businesses that generate income only during peak months, this condition is difficult to meet. While the law allows an exception for natural persons who must show a turnover of €15,000 in the previous season, many employers warn that these rules are administratively unfeasible and could lead to cancelled reservations due to a lack of workforce.
Rise in the Number of Foreign Workers
Despite regulatory hurdles, the number of foreign workers in Croatia continues to grow. In the first three months of 2025, a total of 53,662 residence and work permits were issued—an increase of three percent compared to the same period last year. Most permits were issued in the construction sector (17,343) and tourism and hospitality (15,870).
Most foreign workers come from Nepal (12,078), Bosnia and Herzegovina (9,389), and the Philippines (5,946), and an increase in workers from Serbia and North Macedonia is expected as the summer season begins.
Legal Framework and Expected Changes
The new Aliens Act imposes additional obligations on employers—from proving adequate accommodation for foreign workers, to providing financial guarantees in case they cancel employment, and covering the cost of returning workers to their home countries. Furthermore, foreign workers must now report termination of employment within 5 days instead of the previous 15.
With tighter oversight and a blacklist of employers who violate the law, the Ministry of Labour aims to establish a fair and transparent employment system while encouraging domestic workforce engagement.
Recommendations for Employers
In the current context, employers are advised to:
● plan their seasonal workforce early and review the legal requirements,
● cooperate actively with relevant authorities to avoid administrative obstacles,
● monitor all regulatory changes, including potential easing of turnover conditions for foreign worker employment,
● explore additional domestic hiring options, including pensioners and individuals undergoing retraining.
Professional human resources management, awareness of legal obligations, and proactive planning will be key to successful operations in the 2025 season, where the Croatian labour market remains central to economic strategy.
How CONEO Croatia Can Help?
The current situation on the Croatian labour market requires a balanced approach: activating the domestic workforce through reforms and incentives, and at the same time introducing more flexible regulations for the temporary import of foreign labour, especially in seasonal industries.
For all questions related to employment, regulation, and tax planning, CONEO Croatia offers support to employers in tourism and other sectors.
