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Wages Are Rising, Jobs Are Plentiful, but There’s No One to Work: Croatia’s Construction Sector Faces a Serious Crisis

03/31/2026

Wages Are Rising, Jobs Are Plentiful, but There’s No One to Work: Croatia’s Construction Sector Faces a Serious Crisis

The construction sector in Croatia is facing a serious labor shortage that is slowing down the entire market.

Topics such as energy efficiency and workplace safety were completely overshadowed at a large gathering as part of the 5th Meeting of Builders of the Croatian Chamber of Trades and Crafts, which brought together more than 200 tradespeople in Bjelovar. According to data reported by the portal index.hr, the biggest problem in construction remains the long-term shortage of skilled workers.

Chamber president Dalibor Kratohvil explained that there are currently around 17,000 construction trades operating in the country and that 6,500 new businesses have been opened in the last 5 years, but demand for their services still greatly exceeds supply.

The solution is being sought in scholarships for young people

There is plenty of work, and earnings are high, but citizens wait months for the start of even the most basic work. State Secretary of the Ministry of Economy Goran Romek pointed out that the sector lacks more than 10,000 workers and that all of Europe is struggling with the same crisis. In order to alleviate this problem, the state plans to increase the number of scholarships for young people training to become skilled workers and finance their work-based learning. Pressure on the labor market is expected to ease somewhat when the major reconstruction of buildings damaged in the earthquake is finally completed, as it currently ties up all available workers.

Employers offer loans to retain workers

Employers have been warning for years about the constant decline in the number of employees, and the director of the Bjelovar company Hidroregulacija, Dominik Nervo, sees the solution in keeping young people in the profession. His company uses its own funds to provide scholarships to students and offers favorable loans with the lowest interest rates in order to help young families secure a stable life in their city. On the other hand, the local chamber of trades and crafts records positive results because in its area it counts 1,800 active businesses and 160 new jobs opened during the past year, which is attributed to the construction of new roads and local infrastructure.

The domestic market depends on foreign labor

The shortage of construction workers is a direct consequence of the broader problem Croatia is facing, namely the long-term emigration of skilled personnel to western countries of the European Union. The domestic construction industry today largely depends on the import of foreign labor from countries such as Nepal, India, and the Philippines, whose citizens are taking on an increasing number of jobs on construction sites. If systematic measures that will improve working conditions and retain domestic skilled workers are absent, the quality of construction will become questionable, and the prices of basic construction services will continue to rise to levels that will be completely unattainable for average citizens.