Analyst: There is very little room for increasing Croatian salaries
Economic analyst Predrag Bejaković highlights the ongoing challenges in the Croatian labor market, particularly in finding seasonal workers ahead of the tourist season.
In a recent commentary on HRT's central news, economic analyst Predrag Bejaković discussed the current state of Croatia's labor market as the country approaches its critical tourist season. He emphasized that the difficulties in finding adequate labor are likely to persist, despite efforts to increase workforce participation rates. While Croatia has seen a rise in its labor activity rate, it remains lower than the EU average, underlining a significant shortfall in available workers.
Bejaković noted that estimates predict a shortage of around 65,000 seasonal workers this year, even as official data records about 87,000 unemployed individuals. He expressed concern that many job vacancies may remain unfilled by local workers, suggesting the necessity to employ foreign labor to meet demand. He views this inclusion of foreign workers as a positive development, urging Croatian citizens to recognize the importance of external labor in bolstering the economy, particularly during peak tourism months.
The analyst's observations come at a critical time as Croatia's economy relies heavily on tourism, which requires a substantial seasonal workforce. With continuing challenges in domestic labor supply, the situation may prompt broader discussions about labor policies, employment strategies, and integration of foreign workers to sustain economic growth and meet industry demands during the busy tourist season. The potential implications for wage growth in the country remain a topic of concern, with limited room for increases due to market conditions and workforce shortages.