Croatia's Industrial Workforce Shrinks Nearly 5% Year-on-Year

The latest figures from the Croatian Bureau of Statistics paint a clear picture of a shrinking industrial workforce, even as output per worker improves. The number of people employed in Croatian industry fell by 4.9 percent in September compared with the same month last year, according to data from the DZS. On a monthly basis, employment rose by a modest 0.1 percent from August.

Manufacturing, which accounts for almost 92 percent of all industrial jobs, saw its workforce shrink by 5.5 percent year-on-year. The steepest declines were in clothing production, where employment dropped 29.2 percent, and furniture manufacturing, down 16.8 percent. On the other hand, production of motor vehicles, trailers and semi-trailers recorded a 12.5 percent increase in employees.

Other industrial sectors painted a mixed picture. Employment in mining and quarrying grew by 3.7 percent compared with September 2025, while the supply of electricity, gas, steam and air conditioning added 1.5 percent more workers. Month-on-month, mining employment edged up 0.3 percent, and the energy supply sector remained unchanged.

The downward trend is also visible over the first nine months of 2026. Total industrial employment fell 5.3 percent compared with the same period last year. At the same time, labour productivity in industry rose by 8.2 percent, suggesting that companies are producing more with fewer workers.

These figures point to an ongoing restructuring of Croatia's industrial base, with traditional labour-intensive sectors such as clothing and furniture losing ground, while automotive manufacturing and energy continue to add jobs. While the drop in employment may reflect automation and consolidation, the rise in productivity is a positive sign for the economy's competitiveness.