Industry Loses 5.3% of Its Workforce in One Year
Latest data from the Croatian Bureau of Statistics reveals a dramatic decline in industrial employment, with clothing manufacturing losing nearly a third of its workforce.
Latest data from the Croatian Bureau of Statistics reveals a dramatic decline in industrial employment, with clothing manufacturing losing nearly a third of its workforce.
Croatia's industry is facing a significant decline in employment. According to data from the Croatian Bureau of Statistics (DZS), the total number of employees in this sector in June 2026 was 5.3 percent lower compared to the same month last year. On a monthly basis, employment in June rose by a modest 0.2 percent compared to May.
Data for the first six months of 2026 confirm the negative trend. During this period, industrial employment fell by 5.4 percent compared to the same period in 2025.
Within industry, manufacturing plays a dominant role, accounting for nearly 92 percent of total employment. It also recorded the most pronounced annual decline in employment of six percent. On a monthly basis, however, there was a slight increase of 0.1 percent compared to May.
A more detailed breakdown reveals where job losses are most dramatic. In clothing manufacturing, the number of employees decreased by 30.8 percent on an annual basis. This is followed by furniture manufacturing with a decline of 19.4 percent, and the production of other transport equipment, which lost 17.5 percent of its workforce.
In contrast to negative trends, certain segments of industry are seeing employment growth. Within manufacturing, the largest annual increase was recorded in the production of motor vehicles, trailers, and semi-trailers, where employment rose by 11.1 percent.
Other sectors also show positive movements compared to June 2025. Employment in the supply of electricity, gas, steam, and air conditioning, a sector that accounts for 6.1 percent of total industrial employment, increased by 2.6 percent. Mining and quarrying, with a share of just over two percent of total industrial employment, saw a rise of 1.5 percent. On a monthly basis, however, mining recorded a decline of 0.5 percent, while the energy sector grew by 0.1 percent.
Interestingly, despite the reduction in the number of employees, overall labor productivity in industry has increased. In the period from January to June 2026, it was six percent higher compared to the same period in 2025. This data suggests that companies are managing to maintain or increase production with fewer workers, likely thanks to automation and process optimization.
