According to the latest data, Croatia’s registered unemployment rate stood at 5.4% in January 2025, down 1.4 p.p. from the previous year, while number of employed reached 1.7m up 3.5% YoY. Average net earnings in December 2024 were EUR 1,361, showing a 0.5% real monthly decrease but a 10.5% YoY increase. In Slovenia, employment in December 2024 totaled 938,400, down 0.3% YoY. Average net earnings surged to EUR 1,825.75, rising 13.6% in real terms from November 2024, driven by seasonal bonuses.
Croatia
Turning to the latest data for December 2024, average monthly paid net earnings amounted to EUR 1,361, reflecting a 0.4% nominal and 0.5% real decrease compared to November 2024. However, on a year-on-year basis, net wages showed significant growth, up 14.3% nominally and 10.5% in real terms.
Meanwhile, average gross earnings stood at EUR 1,877, marking a 1.2% nominal and 1.3% real decline from the previous month. Year-on-year, gross earnings rose by 15.9% nominally and 12.1% in real terms, highlighting continued wage growth despite recent short-term declines.
Average annual net wage in Croatia at the end of 2024 stood at EUR 1,318 showcasing 14.8% nominal and 11.5% increase on FY 2023. Furthermore, median net earnings for December 2024 amounted to EUR 1,156, which is 0.5% lower compared to November 2024, but 15.0% higher than in the same month of the previous year.
Average monthly gross and net earnings in Croatia (Jan 2023 – Dec 2024, EUR)
Source: ZSE, InterCapital Research
According to the latest data from the Croatian Bureau of Statistics, the total number of persons in employment was 1,693,981, showing slight decrease by 1 % on December 2024 and increase of 3.5% YoY. On the annual level, we can acknowledge rise in employed persons by 3.5%.
Considering both the total number of employed and unemployed persons, the registered unemployment rate in January 2025 stood at 5.4%, marking a 1.4 p.p. decrease compared to January 2024, thus 30 bp increase from December 2024.
Total Number of Employed Persons in Croatia (Jan 2020 – Jan 2024)
Source: ZSE, InterCapital Research
Slovenia
Last Thursday, the Statistical Office of the Republic of Slovenia released data on wages for December 2024. The report shows that, compared to November, average net earnings amounted to EUR 1,825.75. Compared to earnings for November, they were higher in nominal terms by 13.3% and in real terms by 13.6%. This substantial rise in wages was driven by Christmas bonuses and other 13th-month extra payments. The increase was observed in both the private and public sectors, with wages in the private sector rising by 11.9%, while the public sector trailed with a 10.1% increase.
The average monthly gross earnings for 2024 amounted to EUR 2,394.92, while net earnings stood at EUR 1,526.02. Compared to 2023, gross earnings were higher by 6.2% in nominal terms and 4.1% in real terms, while net earnings rose by 3.8% nominally and 1.8% in real terms.
Compared to earnings for November, average gross earnings increased in both sectors – in the private sector by 11.9% and in the public sector by 10.1% (in the institutional sector general government they went up by 8.4%). Sector-wise, yearly wages in the private sector increased by 7.0%, while the public sector recorded a 4.6% increase.
Average monthly gross and net earnings in Slovenia (Jan 2023 – Dec 2024, EUR)
Source: SURS, InterCapital Research
Moving on to the latest available data for December 2024 regarding the number of employed persons in Slovenia, there were 938,400 people employed in Slovenia reflecting a decrease of 1.1% compared to November, likewise with the annual slight decrease of 0.3% which represents stagnating labor force with most significant declines recorded in construction and manufacturing.
We can also identify notable decline among older workforce, that can largely be attributed to retirements, decline across all 20 sections of activities and fewer foreign citizens in employment at monthly level what is shown as a seasonal trend.
Total Number of Employed Persons in Slovenia (Jan 2020 – Dec 2024)
Source: SURS, InterCapital Research
Croatia continues to show positive labor market trends with declining unemployment and solid annual employment growth, despite minor monthly drops. Wages have seen strong YoY increases, and recent short-term declines don’t overshadow the significant real growth in recent years. Slovenia, on the other hand, reflects a stagnating job market with a slight decline in employment, while the sharp wage jump in December is more of a seasonal spike than a reflection of genuine growth. Both countries have experienced substantial real wage increases over the past years, and the recent data is simply a continuation of that trend, rather than an exception.