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Salary and employment trends: what you need to know for H1 2025

In the fast-moving job market, staying competitive is more than knowing the basics of hiring and job hunting. Understanding the labor market—its current trends, salary expectations, and employment patterns—is crucial for both employers and employees.

As a part of the HR industry, where we research salary and employment trends through our semi-annual SATR – Salary and Employment Trends Report, we’ve seen firsthand how valuable this data can be in shaping decisions that keep businesses and individuals competitive.

In this article, we’ll explore why a deep understanding of the labor market is essential for employers and job seekers to remain agile and competitive in an ever-evolving environment.

The changing labor market - why it matters?

The labor market is constantly evolving, shaped by technological advancements, economic shifts, and regional variances. Understanding these dynamics is key to staying competitive.

Proactive understanding: Rather than reacting to changes, businesses and job seekers must anticipate shifts like salary trends and emerging industries.
Salary trends: Staying informed about current salary ranges ensures businesses offer competitive wages.
Industry shifts: Recognizing sectors that are growing or contracting helps both employers and job seekers focus on areas with the most opportunity.

The Manpower Salary and Employment Trends Research (SATR) for the first half of 2025 reveals that 76.35% of employers in Croatia plan salary increases.

Insights from Croatian employers for the H1 2025

From this year's SATR H1 2025 report, Manpower Croatia collected the prognoses of Croatian employers for the first half of 2025. Many industries were included, but the sectors anticipating the largest salary hikes include construction, telecommunications & electronics, and the IT industry.

Among those planning increases, 35% expect to raise salaries between 6% and 10%, while almost 28% anticipate increases up to 5%. A smaller portion, 1.79%, intends to boost salaries by more than 20%, with 23.66% of employers indicating no plans to adjust salaries.

Through comprehensive labor market research, such as our Salary and Employment Trends (SATR) report, businesses gain insights into average salary ranges for various roles and industries.

Why is it necessary to monitor salary trends in the market?

One of the most tangible ways that labor market research impacts competitiveness is through salary research.

Salary expectations are constantly shifting, and employers must stay informed about the current salary ranges in their industry to remain competitive. If companies offer salaries that are too low compared to market standards, they risk losing out on skilled workers.

By understanding HR trends, companies can make more informed decisions about hiring, compensation, and workforce planning, ensuring they align with current market conditions.

To find the optimal pay range, companies need to consider current market trends, industry standards, and the specific demands of the role, all while ensuring they remain competitive enough to retain top talent.

Additionally, understanding regional differences and evaluating internal equity are also crucial components in setting the right salary levels. By staying informed on labor market shifts and salary benchmarks, employers can ensure their pay practices align with both employee expectations and business needs.

Industry shifts & employment trends

Understanding employment trends in the labor market is crucial for both employers and job seekers—beyond just salary data. Some sectors are experiencing rapid growth, while others may be slowing down or even shrinking.

For employers, staying informed about these industry shifts allows them to:

Focus recruitment efforts on high-demand areas.
Attract candidates with the right expertise.
Plan for training and upskilling existing employees to meet new challenges.

Additionally, knowing which roles are in demand allows job seekers to focus their efforts on acquiring the relevant skills to stand out in the job market.

Benefits beyond the salary

While salary is often the most talked-about factor in job negotiations, additional benefits and perks are becoming increasingly important in attracting and retaining talent.

Labor market insights help businesses stay competitive by understanding how salaries compare within their industry and region, tracking unemployment rates, and predicting trends in workforce demand.

For example, salary guides and labor market surveys, provide in-depth data on hiring trends, compensation expectations, and key challenges that employers face. These resources help employers understand the factors driving wage increases and how to adjust compensation structures accordingly, especially in a competitive job market.

Manpower Croatia "Salary and Employment Trends" report (SATR H1 2025) highlights that most employers highlighted Christmas bonuses, performance awards, and teambuilding as the most popular benefits.

Offering the right benefits to attract and retain top talent

For businesses, understanding the benefits currently being offered across the market is crucial for building competitive compensation packages that go beyond just salary. These benefits can significantly influence decision-making for both job seekers and employers.

Some of them:

Health insurance
Remote work options
Bonuses
Professional development opportunities

With the rise of remote work and more emphasis on work-life balance, candidates are increasingly looking for roles that offer more than just a paycheck. Labor market research helps job seekers identify these benefits, ensuring that they choose employers who align with their values.

How does labor market research support long-term business success?

In a competitive job market, it’s not just about reacting to changes as they occur; it’s about anticipating changes and adapting proactively.

Businesses that continuously monitor and analyze labor market trends are better equipped to make strategic decisions that support long-term growth.

Likewise, individuals who invest in understanding the market are more likely to succeed in navigating their careers, whether it’s negotiating better salaries, switching industries, or finding roles that align with their values.

Research like the SATR report provides invaluable insights into key areas of the labor market, such as salary movements, employment growth, and shifting industry demands. For businesses, it ensures that they remain competitive in their recruitment efforts and compensation strategies.

For job seekers, it provides the knowledge needed to navigate the job market successfully and align career goals with industry trends.

Why should every employer have labor market insights?

Having access to up-to-date, accurate information is essential for staying ahead of the competition. For employers, understanding the labor market allows them to attract and retain the best talent, while for job seekers, it provides the tools to negotiate fair compensation and make strategic career decisions.

Through comprehensive research and an understanding of salary trends, employment forecasts, and industry shifts, businesses, and job seekers alike can stay competitive in a constantly evolving job market.

Investing time and resources in labor market research is not just beneficial—it’s necessary for anyone looking to thrive in today’s labor environment.

Whether you’re an employer or a job seeker, understanding the trends and shifts in the labor market ensures that you remain competitive, adaptable, and well-prepared for the future of work.

Looking for up-to-date employment and salary?

We publish Salary and employment trends report every six months, where you can find the employers intentions regarding the employment, salary increases, benefits and many more.

If you're an HR professional or a business owner that wants to make more informed HR decisions, REQUEST A FREE "SALARY AND EMPLOYMENT TRENDS" (SATR) REPORT.