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Comparative Analysis and Change in Labour Market for Croatia and Selected Transition Economies

The process of transition is characterized by structural changes throughout the economy. The changing economic structure is reflected in the structure of labour market and employment. If we presume the employment structure of the EU countries as a long-term target of the transition, than it is required a comparative analysis of the Croatian labour market among the EU countries and the transition economies of Central and Eastern Europe. The analysis of the labour market is derived from the analysis of the economy and its development. Disparity between Croatia and the EU countries is significant, therefore, Croatia will be compared with EU-15 average and less developed EU countries: Greece, Ireland, Portugal and Spain. Among the transitional economies Croatia will be compared with the most developed: Czech Republic, Hungary, Slovak Republic and Poland. Economic transformation into a market economy accompanied by a series of shocks and the most evident shock for the labour market is the shock of high unemployment. The high unemployment rate is a result of the overall decrease in the demand for labour. The economic structure of unemployment shows that in the Republic of Croatia it is mainly a question of cyclical unemployment, and it is expected to be reduced with the economic upswing.

labour market; employment; unemployment; Republic of Croatia

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