Labor Shortage Compounds Croatia’s Struggle to Catch up to Western Europe

Labor Shortage Compounds Croatia’s Struggle to Catch up to Western Europe
Unfolding a large banner calling for more jobs in Europe and in Croatia a group of protesters as part of some 50,000 people coming from Belgium, Germany, France, The Netherlands, Poland and others, demonstrate 19 March 2005 in the streets of Brussels in a anti-EU Neo liberal policies demonstration organized by European Trade Unions. Gerard Cerles/AFP/Getty Images
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ZAGREB—Croatia is suffering a severe labor shortage, most glaringly in its booming seaside tourist resorts, that is compounding obstacles to economic growth and dimming hopes of catching up to more developed European Union peers.

The problem reflects poor levels of pay, education, and skills-training in a still mainly state-dominated economy that has driven many young Croats to find more lucrative, fulfilling work in affluent western EU countries, analysts say.