Croatia has witnessed a significant shift in its labor market dynamics in early 2025, with Nepali nationals emerging as the leading recipients of work permits issued by the Croatian government. According to newly released data from the Ministry of the Interior, more than one in five work permits granted in the first quarter of this year went to citizens of Nepal—a record figure that positions Nepal to potentially become the primary source of foreign labor in Croatia.

This development marks a notable change in the makeup of Croatia’s foreign workforce, with traditional labor sources from neighboring Balkan countries seeing a gradual decline. For instance, Bosnian nationals—historically one of the largest foreign labor groups in Croatia—received 620 fewer work permits in the first three months of 2025 compared to the same period last year. Similarly, Serbian citizens were issued approximately 100 fewer permits during the same period.

Despite the drop, Bosnians and Serbs still remain key contributors to the workforce. In total, 9,389 work permits were issued to Bosnian citizens and 5,945 to Serbian nationals during the first quarter of 2025. In contrast, citizens of North Macedonia saw a modest increase, with around 200 more permits granted compared to 2024.

Rising Dependence on Asian Labor
The Interior Ministry’s data also shows a broader trend: a significant rise in the number of foreign workers coming from Asian countries. Besides Nepal, other Asian nationalities are becoming vital sources of labor across multiple sectors in Croatia.

Filipino workers, for example, were issued approximately 6,000 work permits in early 2025—an increase of 1,800 compared to the same period last year. Indian nationals are also playing a growing role in Croatia’s labor market, with 5,555 work permits granted to Indian citizens, 500 more than in the previous year.

Perhaps the most dramatic increase was recorded among Egyptian workers, who saw a more than 50% rise in permits granted. Roughly 2,000 Egyptians received authorization to work in Croatia during the first quarter, further emphasizing the country's pivot toward foreign labor markets beyond Europe.

Conversely, some Asian countries saw a decline in permit issuance. Notably, the number of Bangladeshi workers in Croatia has dropped, suggesting shifting employer preferences or changes in immigration or labor policies affecting this group.

Employment Growth Reflects Strong Economic Activity
Croatia’s growing demand for foreign labor is part of a wider employment expansion that has been accelerating in recent months. According to figures from the Croatian Pension Insurance Institute, more than 11,000 new workers were registered in March 2025 alone—up from 4,000 in February—indicating a strong upward trend in workforce participation.

The total number of insured individuals reached approximately 1.72 million, with the tourism, hospitality, and construction sectors leading the way in employment growth. These industries remain the most reliant on foreign labor, with construction topping the list in terms of work permits issued.

Specifically, 17,343 work permits were granted to foreign workers in the construction industry, making it the sector with the highest demand. This was followed by 15,870 permits in tourism and hospitality, and 2,779 in the trade sector.

Outlook for the Croatian Labor Market
Croatia’s labor market continues to evolve as demographic changes, economic growth, and sector-specific labor shortages drive employers to seek talent beyond Europe. The increasing reliance on Asian workers, particularly from Nepal, India, and the Philippines, reflects both a shift in labor sourcing strategies and a broader transformation in the country’s workforce composition.

With rising employment numbers and robust contributions from foreign workers, Croatia is actively addressing its labor shortages and supporting key industries essential to its post-pandemic economic recovery.

As these trends continue, the government is expected to refine its labor and migration policies further to ensure the integration and protection of foreign workers, while meeting the growing demands of Croatia’s booming sectors.