Croatia relies on growing foreign workforce as labor shortages persist

Croatia currently employs around 130,000 foreign workers, most of them from Asia, at a time when unemployment is at a record low. 

Still, concerns are growing about the long-term economic impact of relying on foreign labor primarily to fill minimum-wage jobs.

While the figure may seem high, the Ministry of Labor expects the number of foreign workers to increase by an additional 100,000 over the next five years.

“We will insist on certain conditions, such as learning the Croatian language, health assessments, and other measures that will contribute to better management and control of foreign labor,” said Ivan Vidiš, State Secretary at the Ministry of Labor and the Pension System.

Labor unions warn that an influx of low-paid foreign workers could eventually drive down wages and limit Croatia’s overall economic potential. They also argue that unresolved domestic issues—especially housing affordability—continue to push Croatian workers abroad.

“We keep ignoring the housing problem,” said Dražen Jović of the Independent Croatian Trade Union. “Young families need a place to live, but prices in Zagreb are around 2,500 euros per square meter, while the minimum salary is 750 euros. So, of course, our young people and workforce go abroad.”

Although the number of Croatians leaving the country for work has declined in recent years—and many are now returning—Jović says the reliance on foreign labor remains a symptom of deeper structural problems.

“Foreign workers are not to blame,” he said. “This situation is the consequence of low wages, which is why employers turn to cheaper labor from Asian countries.”

Employers, however, argue they have little choice. They say domestic workers remain their top priority, but shortages persist in key sectors.

“Croatian businesses are focused on the domestic workforce—the Croatian worker is the priority,” said Irena Weber of the Croatian Employers’ Association. “But in sectors such as construction, hospitality, tourism, and retail, the problem cannot be solved because the domestic workforce is simply not there.”