The labor market is nothing but a place where supply and demand meet. It is precisely at this "place" that the imbalance has been prevailing in the Republic of Croatia for many years. Starting from a poor-quality and incompatible education system, which in all likelihood must be a "springboard" for the proper entry of young people into the labor market, right up to the crisis of a disfigured national economy, fading economies and poor development policies are just some of the factors that result in an imbalance labor market and enormous unemployment. Unemployment in the "most important" age group, that is, unemployment of young and often highly educated people. The goal of every national economy is undoubtedly the well-being of citizens and a satisfactory (high) standard of living, but the current structure of the labor market in the Republic of Croatia does not show that, so this final paper will try to explain where the Republic of Croatia “strayed” on its path to its goal. The Republic of Croatia, being one of the twenty-eight member states of the European Union, is among the worst ranked countries when it comes to youth unemployment and / or stimulating and stimulating growth in youth employment. A non-dynamic and static policy of change and development has just brought the Republic of Croatia to where it is today, to the very bottom of the European Union when it comes to youth unemployment, side by side with Cyprus, Greece and Bulgaria. Accordingly, the aim of this paper is to point out the failures of the Croatian labor market. Thoroughly analyze the causes and consequences of the current poor economic situation, point out the high unemployment rate and the problem of youth unemployment. In conclusion, this final paper will highlight a mismatch between the education system and the labor market in the Republic of Croatia.