A better performing labour market for inclusive convergence in Croatia
Croatia’s labour market has made important progress over the past decade. Employment
rates are rising, reducing the gap with OECD countries, and poverty has fallen. While
important weaknesses remain, many dimensions of equity and working conditions are
similar to OECD countries. Continuing this progress is essential for Croatia’s incomes
and well-being to converge with OECD countries, to counter accelerating population
ageing and to make the most of emerging opportunities, including from digitalisation
and the green economy transition. For employers, filling increasingly advanced skill
needs is a growing obstacle. Relatively few of the young and older adults are in work
– contributing to weakening skills, lower incomes and higher poverty risks. Addressing
these challenges will require dramatically expanding participation in re-skilling
and adult education programmes, and raising the workforce’s flexibility, for example
by strengthening active labour market policies, improving the housing market’s dynamism
and making the most of immigrants’ and returned emigrants’ skills. This Working Paper
relates to the 2023 OECD Economic Survey of Croatia.
Published on December 12, 2023
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