Salary and employment trends: salary increases anticipated?
The current state of the Croatian labour market in 2024
In May, registered unemployment decreased, and by the end of May, there were 88,327 registered unemployed, which is 10.62% less compared to April, and 9.6% less compared to May last year.
During May, 8,318 individuals registered as unemployed, which is 8.09% less than in April, and 16.7% less compared to May of the previous year.
The largest share of unemployed individuals are in simple occupations (36.26%), administrative positions (13.04%), and technicians and professional associates (13.03%). From this, the highest share of unemployed is found in Split-Dalmatia County (16.8%), Osijek-Baranja County (13.64%), and the city of Zagreb (11.68%).
Manpower Research "Salary and Employment Trends" (SATR H2 2024)
The research on wage movement and employment trends presents us with a positive employment forecast for the Croatian market and reveals that 46.04% of Croatian employers plan to hire more than lay-off workers.
Industries that stand out in this respect include tourism and hospitality, telecommunications, electronics and electrical engineering, and information technology.
Also, 56.13% of employers foresee an increase in wages for the second half of 2024. The largest wage increases are anticipated by employers in healthcare and pharmacy, telecommunications, electronics and electrical engineering, and the manufacturing industry.
More than half of employers foresee wage increases
In the second half of 2024, 54.38% of employers plan to raise wages. Of these, 24.12% of employers will increase wages by up to 5%, and 20.61% between 6% and 10%. A smaller share, 1.32% of employers, plans to increase wages above 20%, while 43.86% of employers do not plan to change wages.
Are additional benefits following the positive forecast?
Regarding additional benefits, a larger share of employers (62.28%) do not plan major changes in terms of additional benefits and financial incentives for employees in the second half of 2024, while 35.53% of employers plan to increase additional benefits.
Manpower's net employment forecast for the second half of 2024 is positive and stands at +39.6%.
Forecasts for wage changes in the second half of 2024
Research "Wage Movement and Employment Trends H2 2024" shows that more than half of the employers (56.13%) plan to increase wages, while 43.87% of employers do not plan any changes in the next six months.
The largest share of employers (24.12%) who will increase wages plans to increase wages by up to 5%, while 20.61% of employers plan wage increases between 6% and 10%. Additionally, 8.33% of employers foresee wage growth between 11% and 20%, and 1.32% of employers plan to increase wages by more than 20%.
In terms of additional benefits, the majority of employers (62.28%) do not plan significant changes, while 35.53% of employers say they will increase additional benefits or bonuses.
A smaller share of employers (2.19%) will reduce or eliminate additional benefits or bonuses.
"The forecasts of the SATR research for the second half of 2024 indicate a positive employment trend on the Croatian labor market, confirming the importance of continuous investment in human resources and adaptation to changing market conditions," emphasized Tamás Fehér, Executive Director of Manpower for Hungary, Croatia, and Slovenia.
Employment intentions in the second half of 2024
In the second half of 2024, 46.04% of employers plan to employ more than lay off. Only 3.48% of employers plan to lay off more than hire, while 32.67% foresee no changes in employment, and 18.81% are still undecided about their hiring intentions. The net employment forecast for the second half of 2024 is a promising +39.6%.
Manpower's report on wage movement and employment trends presents an optimistic employment forecast for sectors such as tourism and hospitality, telecommunications, electronics, electrical engineering, construction, and information technology.
On the other hand, industries like banking, finance, insurance, healthcare, and pharmacy show lesser intent for hiring.
Looking for representative and up-to-date wage data for key employer positions across different industries?
Find HERE current reports on labor market trends, wage ranges, and wage system analyses.
