The Number of New Employment Agencies in Croatia Decreased by as Much as 65 Percent

The latest data from the Ministry of Labour, Pension System, Family and Social Policy shows a strong slowdown in the opening of new agencies after the amendments to the Foreigners Act came into effect on March 15. Since then, until the end of October, the number of newly established employment agencies has decreased by as much as 65 percent compared to the same period last year, while the number of new temporary employment agencies is down by 57 percent.

According to data provided by the Ministry to Lider, as of November 4, 2025, there were 904 registered employment agencies in Croatia. Of these, 735 are active, while 169 have ceased operations or changed their business activities.

At the same time, the register recorded 1,195 temporary employment agencies, but only 826 are actively operating, while 369 have closed or redirected their business.

The Ministry notes that business entities often do not report the cessation of activities, so official lists are updated periodically. Therefore, the actual number of active agencies is likely lower than recorded, which confirms industry estimates that the employment agency market is entering a period of consolidation.

Legal Changes and Decrease in Demand for Foreign Workers

Stricter regulations and the consequent reduction in the number of issued permits for foreign workers have severely impacted the operations of numerous agencies, especially smaller intermediaries that have specialized in importing labor from third countries in recent years.

According to data from the Ministry of the Interior, the number of issued work permits has decreased by more than 22,000 compared to the previous year, and the construction sector, which was recently the main generator of demand for foreign workers, is no longer leading in employment.

Additional pressure on the market comes from new intergovernmental employment programs, such as the recently agreed one with the Philippines, where private agencies no longer have a role, as mediation is taken over by state institutions.

In combination with a smaller influx of foreign workers and increased oversight, it is clear that the mediation market is going through an adjustment phase that could last in the coming years.