The total number of employed persons in the industry sector in December 2024 decreased by 0.4% compared to November and by 2% compared to December 2023, according to data from the Croatian Bureau of Statistics.

According to the National Classification of Activities, employment in the manufacturing industry, which accounts for nearly 92% of total industrial employment, fell by 0.6% compared to the previous month.

In mining and quarrying, which makes up just under 2% of total industrial employment, the number of employees remained unchanged from November. Meanwhile, employment in electricity, gas, steam, and air conditioning supply, which holds a 6.1% share, increased by 0.3%.

On an annual basis, the number of employees in the manufacturing sector declined by 2.3%, with the steepest drops recorded in the production of clothing (-21.7%) and leather and related products (-12.8%).

Increased Labor Productivity

At the same time, the highest annual employment growth was recorded in tobacco product manufacturing (+7.2%), computer, electronic, and optical product manufacturing (+5.9%), and the production of other transport equipment (+5.4%).

From December 2023 to December 2024, employment in electricity, gas, steam, and air conditioning supply fell by 0.2%, while the mining and quarrying sector saw an employment increase of 6.4%.

Overall, employment in the industry sector in 2024 was 2.2% lower than in 2023. However, labor productivity in the sector increased by 0.3% compared to the previous year.

Unemployment Rate Below the European Average

Eurostat data for December 2024 shows that Croatia remains among the EU countries with the lowest unemployment rates at 4.5%, compared to the EU average of 5.9%.

Spain (10.6%), Greece (9.4%), and Finland (8.7%) recorded the highest unemployment rates, while the lowest were in the Czech Republic (2.6%), Poland, and Malta (3%).

Notably, Croatia had one of the highest unemployment rates in the EU until 2018, when it was as high as 12.5% in 2016. Since then, it has steadily declined, dipping below the EU average in 2023.