Empowering Croatia's Future : Enhancing Youth Employment and Skills Development

Overview & Synopsis

Croatia faces two key labor market challenges: a shortage of labor and the inadequate skills of its existing workforce. These challenges are being shaped by global megatrends, namely, demographic, green, and digital transitions. To address these key challenges, actions are needed on several different fronts, including the activation of untapped domestic labor potential, diaspora engagement, and attracting foreign workers, in addition to improving the skills of the existing and future workforce. This note examines the current barriers to employment faced by Croatian youths who are not in employment, education, or training (NEET) and reviews the government’s efforts to address these challenges, with the aim of providing recommendations to accelerate progress, enhance existing initiatives, and foster innovations. By analyzing the broader economic con[1]text and the root causes of youth unemployment and inactivity in Croatia, the note identifies key barriers to employment faced by Croatian youth, reviews the government’s current efforts, and offers actionable recommendations to address these issues and better support young people in accessing the labor market.