Workforce in Croatia: Persistent pain has become a strategic problem

Since joining the EU in 2013, more than 250,000 Croats have gone to Ireland, Germany, Austria and other EU countries in search of a better life. If we add to that the fact that we are on the growing list of countries where the population is aging, the conclusion is self-evident: we lack workers. 

The unsustainability of the pension system and the precipitous decline of the economy are less and less an assumption and more and more a certainty.This year, it was estimated that Croatia is continuously short of more than 60,000 workers, and that we need more than half of this figure in tourism alone. 

Although we "got out" this tourist season with 20,000 workers, it is completely unreasonable to claim that this "getting out" tactic is sustainable and meaningful. At a time when the developed countries of the world - economically stronger than Croatia - are struggling with declining birth rates and an aging population, a smart strategy of continuous, not only seasonal, employment is the only option. 

The lack of workers is a strategic problem that seriously affects the future and growth of the economy and is not helped at all by short-term filling of "holes".

Global imbalance

While developed countries are struggling with population stagnation and aging, developing countries and poor countries are recording growth in the working age population. It is estimated that by 2050, the working-age population in OECD countries will decrease by more than 92 million people, and in developing countries, it will increase by almost 1.4 billion. 

And if "only" 667 million people moved from poor to developed countries to make up for the labor shortage with the same productivity gap, global GDP would grow by roughly $30 trillion or 25% of global output! 

Germany recovered after the Second World War thanks, among other things, to the importation of labor from Turkey and the Mediterranean countries. 

Does this mean that this problem is solvable?

Croatian image and (non)opportunity

Croatia is until 31.8. issued 86,032 work permits, (of which 28,191 in the hospitality industry) mainly for citizens of Bosnia and Herzegovina, Serbia, Macedonia and Nepal. Pretty big numbers for our rather small country. 

Quick solutions such as seasonal import of workers from abroad cannot ensure business sustainability. 

The "hole" of 15,000 workers in the season is mostly filled with people without experience, which greatly affects the quality of service in our strongest branch - tourism. 

A country where tourism is an important source of income must not allow such a mistake in steps and shake its hard-won competitiveness. 

But tourism and catering are not the only problems - namely, we also lack workers in the construction industry and metallurgy.

Until recently, Croatia relied on its neighbors, mostly Bosnia and Herzegovina. However, that source is also slowly drying up. 

According to the UN projection for the period 2020-2050. BiH, Croatia, Serbia, Macedonia and Bulgaria are in the Top 20 with the fastest falling populations, and it is expected that BiH, Croatia and Serbia will lose 18% of their population. 

Solution: Asia should be given a chance. 

A high work culture, diligence, discipline and gratitude are just some of the attributes that employers use to describe their Asian employees today. Besides, just like our people at the beginning of the story, they also come here in search of a better life in the long run.

Why Manpower?

It's one thing to bring anyone to work, but the key - and this is what Manpower is known for - is to bring in those who will stay here. 

This continuity of business greatly helps employers in planning and reducing turnover. 

At the same time, Manpower handles all administrative and bureaucratic issues: from selection in domicile countries to employment here. 

New employees are formally and practically checked, before employment they are given time for adaptation and integration. 

Manpower operates according to the highest standards, so it is not surprising that it has been declared the most ethical company in the world for 13 years in a row!