Croatia’s economic progress and rising living standards offer a window to strengthen its lifelong learning and skills system. As the country faces rapid population decline, high emigration, and growing skills shortages in key sectors, expanding access to quality reskilling and upskilling opportunities will be crucial to support inclusive growth and labour market resilience. This Chapter focuses primarily on skills developed outside the formal education system or beyond upper-secondary education. It proposes measures to help more adults acquire the basic and technical skills needed to integrate into the labour market and advance their careers. It underscores the need to expand opportunities for the lower educated, introduce mid-level qualifications, and ensure more inclusive funding for post-school learning. It also highlights the importance of improving evidence on dropout as well as, more broadly, enhancing capacity to analyse and use skills data and strengthening governance arrangements to support more coordinated and effective skills policy.
Education and Skills in Croatia
Abstract
Despite the progress Croatia has made in developing the economy and improving living standards, the country’s rapid population decline, and high emigration has led to emerging skills shortages in some sectors (see Chapter 2). Immigration is helping to fill demand in lower-skilled occupations of Croatia’s tourism and construction industries, which have led job growth over the past decade. However, employment rates and participation in adult learning is very low by international standards, especially for people with fewer initial qualifications and those living in remote or economically lagging regions. This makes it difficult for disadvantaged adults in Croatia to reskill and upskill in response to changing skills demands. Moreover, Croatia’s public expenditure for post-school education and training primarily funds younger students in full-time higher education, contributing to imbalances in the range of education and training opportunities for adults.
Recent skills policy initiatives that address adult learning and vocational education and training (VET) have tried to address these challenges. Notably, Croatia’s new adult learning voucher scheme, along with other key reforms like the Croatian Qualifications Framework (CROQF), represent important policy developments that can benefit adult learners. This Chapter aims to support Croatia’s skills policies by drawing on OECD experience of analysing skills information, improving institutional co-ordination, and streamlining procedures for developing qualifications and programmes. While "skills" generally refers to all competencies produced across the life course, this Chapter focuses primarily on those skills developed outside of the formal education system or after upper-secondary education, as the previous chapters of this report already cover skills outcomes and policies earlier in life.
Section I: Provides an overview of Croatia’s skills system, focusing on how policies compare internationally;
Section II: Compares the sector’s performance with OECD benchmarks on international indicators;
Section III: Provides recommendations on how Croatia can learn from OECD evidence and experience to further improve the skills system.
Governance and structure
Responsibilities for skills policies are split across two central ministries and several associated bodies
In Croatia, responsibilities for skills policy covering adult learning and VET are shared by the Ministry of Science, Education and Youth (hereafter, MSEY), the Ministry of Labour, Pension System, Family and Social Policy (Hereafter, the Ministry of Labour), and multiple bodies that support these ministries (see Figure 6.2). The MSEY has primary responsibility for VET, adult learning, and qualifications, while the Ministry of Labour has primary responsibility for occupational standards and programmes to reintegrate people who are not in education, employment, or training. Other than these two ministries, several other bodies also have responsibilities related to skills policies in Croatia.
Source: Adapted from Ministry of Science, Education and Youth (2023[1]), Accession candidate country's self-assessment of policies and practices in the area of education and skills; YouthWiki European Commission (2024[2]), Croatia: Youth and the World: Administration and governance, https://national-policies.eacea.ec.europa.eu/youthwiki/chapters/croatia/92-administration-and-governance (accessed on 7 June 2024).
Many OECD countries have similar arrangements whereby responsibility for adult learning is divided between Ministries of Education and of Labour. However, Croatia’s governance arrangements appear more fragmented than most: the MSEY manages qualifications, the Ministry of Labour manages the closely connected occupational standards, and two separate bodies are responsible for developing and executing apprenticeship policy. This fragmentation reflects a broader pattern of weak inter-ministerial co-ordination in Croatia (see Figure 6.3).
Performance in inter-ministerial co-ordination in Croatia and selected countries, 2022
Note: Countries are ranked in descending order of formal inter-ministerial co-ordination score and then alphabetically. Formal co-ordination refers to scores that countries are assigned on the question, “How effectively do ministry officials/civil servants co-ordinate policy proposals?” Informal co-ordination refers to scores that countries are assigned on the question, “How effectively do informal co-ordination mechanisms complement formal mechanisms of inter-ministerial co-ordination?” Scores range from 1 to 10. The higher the score, the better the country's performance. Scores are assigned by country and sector experts and reviewed and approved by scholars and practitioners.
Source: Adapted from Bertelsmann Stiftung (2022[3]), Sustainable Governance Indicators, https://www.sgi-network.org/2022/Good_Governan ce/Executive_Capacity/Interministerial_Coordination (accessed on 7 June 2024).
Social partners advise the government on skills policy
As in most OECD countries, Croatia has established platforms through which social partners (employers and trade unions) can advise the government on skills policy, notably:
The National Human Resources Development Council (HRD Council) has 25 members and is the main body responsible for the strategic development of the Croatian qualification framework. It evaluates public policies related to education, employment and regional development, with the aim of improving Croatia's human potential and competitiveness. It also provides recommendations for planning and development of human resources, monitors the effects of the qualifications framework, and advises on enrolment policies and financing of qualifications (Ministry of Science and Education, 2023[4]).
Sectoral Councils include representatives of key stakeholders and were established in 2021 to give advice on the needs of 25 specific economic sectors. They are advisory bodies that analyse competencies within the sector and make recommendations for their development in accordance with labour market needs. They also advise the HRD Council and ministries on enrolment policies, funding of qualifications, changes in occupational classification, and promoting employment in specific sectors.
The Economic and Social Council was established to foster tripartite co-operation over socio-economic issues between the government, trade unions and employers' associations (Ministry of Science and Education, 2023[4]).
The Croatian Chamber of Economy is the business network that promotes the interests of its members before state authorities and connects key sectors of the Croatian economy. It encourages the development of VET in Croatia and is a partner in the experimental programme of dual education (Ministry of Science and Education, 2023[4]).
The Croatian Chamber of Trades and Crafts issues licences to apprenticeship providers, verifies and keeps record of apprenticeship contracts, issues certificate supplements on apprenticeship, runs training programmes and conducts exams in elementary teaching skills for workplace mentors in crafts occupations.
Croatian Employers' Association is a voluntary, non- profit and independent employers' association that has right to negotiate in the process of collective bargaining and to sign Collective Agreements on behalf of employers.
However, this consultative set-up is not as effective as it might be in enabling social partners to influence skills policy and the delivery of training. First, the number of advisory bodies, spread across a myriad of working groups on different sectors and topics, dilutes the collective influence social partners have on policy and makes it hard for the government to co-ordinate input. Second, these bodies have no direct responsibility for delivering Croatia’s skills programmes and qualifications, which at times makes it difficult to implement their advice.
Funding
Funding for adult education and training in Croatia relies primarily on individuals
Most OECD countries rely on a mix of financing by government, employers, and individuals to provide adequate and equitable education and training for adults (OECD, 2019[5]). Croatia’s funding mix heavily relies on individuals, who typically pay out-of-pocket for the programmes they attend (Ministry of Science, Education and Youth, 2023[1]). This means that advantaged adults - who have the resources to pay for their own training or have employers who are willing to provide financial support - are more likely to participate in education and training. It can also help explain Croatia’s relatively low rates of participation in adult learning (see Figure 6.6). According to Eurostat data, cost was among the most common reasons Croatian adults who wanted to participate in education and training did not (see Figure 6.10). Positively, Croatia’s National Plan for Education to 2027 sets the target of providing free or co-financed adult education to support the development of basic skills.
Most public funding for post-school education and training supports higher education
Table 5.1 provides an overview of the main ways the Croatia government allocates (or manages) public funds for post-school education and training. In some parts of the country, subnational governments can contribute funding to adult education, but this is a very small amount and mainly takes place in Zagreb. The main allocation mechanism from the central government is through direct transfers to higher education institutions, active labour market programmes for the unemployed, and tax deductions to incentivise employer contributions to the education and training of their employees. Deductions for training are tailored to the size of the company and type of education and training offered. However, no evidence that would enable analysis on the effectiveness of this tax exemption scheme was found.
Public expenditure data disaggregated by type of post-secondary institution or programme are not available in Croatia. However, available information shows that public funding for adult learning represents a very small proportion of all post-secondary spending, and that most of this goes to tertiary-level programmes (see Table 6.1). Some OECD governments also allocate large shares of post-school funding to higher education but typically do so while simultaneously providing (public) funding for other lifelong learning opportunities (see Box 6.3). For example, EU countries on average spent 0.165% of their Gross domestic product (GDP) on labour market training in 2020, whereas in Croatia, this share was only 0.033% (Eurostat, 2024[6]). This funding arrangement skews participation in occupational training towards higher education and limits the development of a wider range of adult education and training opportunities.
Note: *The adult voucher scheme is supported by EU funds not the national budget.
EU funding is helping to expand adult learning
At present, many adult education providers in Croatia appear to rely on various EU funding sources to provide free or reduced cost education and training. Notably, the Croatian government launched a new voucher scheme for adult education in April 2022, supported by the National Recovery and Resilience Plan 2021-26. The voucher scheme is already helping reduce cost barriers for adult learning opportunities in some sectors (e.g. green and digital skills). However, it is small relative to the quantity and diversity of Croatia’s skills needs. Positively, the voucher scheme website lists information about available training programmes and there are plans to build a holistic system for career guidance services that span the whole education lifecycle. While these efforts provide advice and information on training opportunities, the voucher scheme does not currently address other demand barriers to participation in adult learning, such as time constraints and obstacles to the recognition of existing skills. Croatia plans to broaden the voucher scheme with additional EU support. This involves extending eligible training opportunities to other sectors and possibly moving towards an individual learner account (ILA) model. The latter would provide an alternative funding framework that could help improve the sustainability of Croatia’s funding base for lifelong learning in the longer term and reduce the reliance on external resources.
Education and training offer
Non-formal adult learning opportunities are more popular than programmes that lead to full qualifications, but the role of formal institutions is larger than in peer countries
Adult education and training in Croatia cover International Standard Classification of Education (ISCED) levels 1 to 5 for learners older than age 14 who are not enrolled in other education and training programmes, have never attended, or have left regular education (Eurydice, 2024[9]). All forms of non-formal and informal education for adults, except higher education, are considered part of Croatia’s adult education system. Programmes are usually vocational and range from short training courses to programmes that lead to full qualifications (CEDEFOP; AVETAE, 2022[10]). A much larger share of Croatian adults (25%) reported participating in non-formal education and training over a 12-month period than the share who reported participating in formal education that leads to a qualification (4%) in 2022 (Eurostat, 2024[11]). Both rates were lower than the EU average, where figures were 44% and 6%, respectively. Formal education institutions play an important role in the provision of adult learning opportunities in Croatia. There are over 500 registered adult education providers, a third of which are VET schools (Ministry of Science, Education and Youth, 2023[1]; CEDEFOP, 2020[12]). Even for non-formal learning, around 12% of provision was delivered by formal education institutions, comparable to Spain (14%) and Türkiye (13.7%), but higher than the EU average of 8%. Conversely, employers play a more limited role in delivering non-formal learning in Croatia than most peer countries (see Figure 6.4).
Share of non-formal education and training activities of adults aged 25–64 by provider, 2022
Note: Countries are ranked in descending order of the share of non-formal education and training activities provided by employers. The EU average includes all 27 member states of the EU as of 2020, after Brexit.
Source: Eurostat (2024[13]), Distribution of non-formal education and training activities by provider, https://doi.org/10.2908/TRNG_AES_170.
Croatia offers limited opportunities for earning mid-level qualifications
Mid-level qualifications at ISCED level 4 and 5 form an important part of any skills system. They allow learners who leave school with upper-secondary qualifications (ISCED 3) to train at more advanced levels while providing an alternative to traditional higher education. However, despite these benefits, mid‑level qualifications are sometimes neglected because they are squeezed between the better understood upper-secondary education (ISCED 3) and bachelor’s programmes (ISCED 6) (OECD, 2014[14]). This is the case in Croatia, which has very few short-cycle tertiary programmes (ISCED 5) (see Chapter 5) and only two adult education institutions offered ISCED 4 qualifications in 2022 (Eurydice, 2023[15]).
A network of Regional Centres of Competence in VET aim to improve the quality and relevance of education and training opportunities
One initiative to improve quality in adult learning and VET opportunities in Croatia has been the development of regional centres of competence in VET. Since 2018, Croatia has transformed 25 VET schools into such centres, reflecting the country’s five economic priority sectors: tourism and hospitality; mechanical engineering; electrical engineering and information and communication technologies (ICT); agriculture, and healthcare. European structural funds supported the development of the Regional Centres of Competence, investing in infrastructure and equipment, as well as workshops to improve practical training opportunities. There was also substantial support for the professional development of teachers and trainers in Croatia, alongside measures to enhance curriculum development. The Regional Centres of Competence will continue to receive EU support over the period to 2029, with new measures designed to assist the green and digital transitions (CEDEFOP; Refernet;, 2023[16]).
Several steps have been taken to strengthen education and training for unemployed Croatians
Croatia’s share of employed adults is low by international comparison (see Chapter 2). This partly reflects shorter working lives (on average) with low employment rates for young Croatians (26% vs. 44% in the OECD on average) and older adults (52% vs 64% in the OECD on average). The pattern suggests difficulties in the transitions into work for youth and in retaining older workers in employment (OECD, Forthcoming[17]). Employment rates are also lower among Croatians with fewer initial qualifications and those living in remote or economically lagging regions (see below) (Eurostat, 2024[18]; 2024[19]). This context has led to the introduction of several policies aimed at engaging more adults in work and training (e.g. the Ministry of Labour’s Jobs Plus Programme or the Youth Guarantee). Croatia’s 2022 Social Welfare Act also calls for mentoring and educational support services for people at risk of social exclusion.
In a closely linked initiative, the Croatian government has committed itself to reaching the EU target of having a 9% not in education, employment or training (NEET) rate by 2030 (European Commission, n.d.[20]). Croatia’s NEET rate has declined faster than average (by more than 10 percentage points) over the last decade and is now only slightly above the EU average (see Figure 6.5) (Eurostat, 2024[21]). While the Ministry of Labour has tried to better understand characteristics of NEET and connect young Croatians with better guidance, early intervention for those at risk, from within the education and training system (i.e. led by the Ministry of Education) may be a more cost-effective approach.
Policies to monitor and prevent dropout are less developed than in many OECD countries
In Croatia and across the OECD, a large share of unemployed and NEET are students who left education and training after upper-secondary school or who dropped out of university. As discussed in Chapters 3 and 4, Croatia is introducing reforms to upper-secondary VET and higher education that promise over time to reduce dropout and ease transitions from education and training into work. However, more immediate policies to understand different student trajectories and their resulting outcomes are lacking. In contrast to many OECD countries, for example, there seem to be very limited attempts to study factors contributing to dropout in Croatia. While the National Plan for Enhancing the Social Dimension for Higher Education 2025-2027 (see Chapter 5) positively references a research project to better understand higher education dropouts, this does not capture students who disengage from education and training before higher education. Reintegration and other programmes to address dropout also appear limited. Croatia’s Youth Guarantee Implementation Plan 2022-2023 describes a range of measures aimed at providing educational support to youth. However, this initiative is led by the Ministry of Labour and the extent to which it will engage education and training actors is unclear, which could affect its impact.
Share of young people (aged 15-29) NEET by highest educational attainment
Source: Eurostat (2024[22]), Young people neither in employment nor in education and training by sex, age and educational attainment level (NEET rates), https://doi.org/10.2908/SDG_08_20.
Information on the skills system and its use
Croatia collects a range of labour market information to guide enrolment quotas in upper-secondary VET and HE, but this data seems to have little impact on adjusting provision
The Croatian Employment Service (CES) exploits a range of information to assess and anticipate skills needs. This includes data on access to employment by the unemployed, on skills shortages reported by employers, and the qualitative impressions of local employment advisers. The CES also considers strategies and plans for economic development of individual sectors at the national, regional, and local levels to forecast the future demand for different professions. This data informs annual recommendations, advanced by the CES, for (unquantified) increases or decreases in training places in specific higher education and upper-secondary VET programmes, according to field of study (Ministry of Science, Education and Youth, 2023[1]).
The CES recommendations are directed to educational institutions, local and regional authorities, sector councils and the MSEY (CEDEFOP, 2020[23]). However, they appear to have limited influence on the mix of provision. It was also reported that while the upper-secondary VET sector sometimes considers expanding provision in certain fields based on CES recommendations, the recommendations rarely led to reductions in provision, which would involve more difficult decisions (World Bank, 2019[24]; CEDEFOP, 2022[25]). Instead, the MSEY reports that upper-secondary VET providers plan enrolment in line with their existing teaching personnel, and students often enroll in training places for occupations where there is a skills surplus, rather than areas where there is an economic need (Ministry of Science, Education and Youth, 2023[26]). The higher education sector also struggles to adjust provision in line with study fields most needed by the Croatian economy (see Chapter 5) (Ministry of Science, Education and Youth, 2023[26]). In 2022 an amendment to the VET Act introduced an obligation for upper-secondary VET providers and their founders to plan enrolments in accordance with the CES recommendations. While the MSEY also provides public labour market data to help providers plan their programmes, there appears to be limited follow-up to determine how institutions respond to CES recommendations in practice.
Outside the CES recommendations, this review found no evidence that the MSE provides support to help institutions adjust their education and training offer in response to changing labour market demands. Neither the MSE nor any other body appear to follow-up on the recommendations to determine how institutions have responded. The fact that the recommendations do not offer direct guidance by setting specific quotas on the number of training places to offer, as some OECD countries do, also makes such accountability harder. However, MSEY have reportedly made some further efforts to address this challenge through guidance given to upper-secondary schools.
Results from PIAAC provide Croatia with additional information on adult skills
Croatia participated in the second cycle of the OECD Survey of Adult Skills (PIAAC), which published results in December 2024. Croatia’s participation in PIAAC was supported by the European Social Fund, as part of a broader project to develop a quality assurance system for adult education (see below). While PIAAC is a sample survey and therefore cannot provide evidence on the effectiveness of specific adult learning programmes and institutions, it offers a valuable baseline of data on the numeracy, literacy, and other information-processing skills of Croatia’s adult population. The data can also be disaggregated according to education qualifications and employment status and linked to other information on participation in adult learning. Such data can supplement Croatia’s national evidence base and inform future education and employment policies.
Quality assurance for adult learning and recognition of prior learning
New quality assurance arrangements for adult learning are under development
Since public funding covers a limited amount of adult learning in Croatia, the government has few means of influencing the quality of providers and programmes. However, one way the government does this is by offering a value added tax exemption to programmes that receive government approval (CEDEFOP, 2020[12]). They also require programmes leading to formal certificates to be developed by registered adult education providers, which are subject to inspection by the MSEY and monitoring (of teaching) by AVETAE (AVETAE, n.d.[27]).
Croatia has been developing a new quality assurance system drawing on domestic and international best practices. Croatia’s new quality assurance system was designed through a European Social Fund project that concluded in 2023 (AVETAE, n.d.[27]). Through the project, the Croatian government defined key quality standards and procedures and piloted these in 25 adult education institutions. Initially the work focused on self-assessment practices, and subsequently extended to external evaluations. The AVETAE organised training sessions and materials to support implementation (AVETAE, n.d.[27]). Croatia’s Act on Adult Education, which entered into force in 2022, provides the legal basis for the new quality assurance system. It includes framework guidelines on the evaluation of students and the external evaluation of training providers (AVETAE, n.d.[27]). Regular implementation of this system began in 2023.
The Croatian Qualifications Framework has emerged as an important quality tool but there are challenges in the procedures for developing standards, qualifications, and programmes
Croatia initially introduced the Croatian Qualifications Framework (CROQF) in 2013, representing an important step towards systematically comparing qualification levels and facilitating policy consistency across different parts of the education and training system. Like many other national qualifications frameworks, CROQF also enables recognition of qualifications received abroad and international statistical comparisons (e.g. the European Qualifications Framework and the International Standard Classification of Education). While CROQF has undergone several legislative amendments, it remains an important quality tool for developing standards, qualifications and training programmes linked to labour market needs.
Croatia’s process of setting occupational standards and eventually implementable training programmes resembles those of many OECD countries and involves three key steps: developing occupational standards, qualification standards, and then educational programmes. However, current procedures face several challenges. First, the scope for anyone to develop an occupational or qualification standard (within the National Classification of Occupations list and subject to government approval) makes it difficult to limit the number of standards. While the list of occupational standards is regularly updated, at the time of writing in February 2024, Croatia had between 500 and 600 occupational standards and was evaluating an additional 600 proposed standards (Department for the Croatian Qualifications Framework, 2024[28]). The openness of this process has facilitated growth and new developments, but it also risks leading to overlaps and duplication, although a mechanism does exist for removing redundant standards, since each standard (and qualification) has a validity period. Secondly, current procedures are cumbersome because they involve a sequence of separate working groups, under different ministries and agencies. For example, the development of occupational standards (managed by the Ministry of Labour) is a separate task from the development of a qualification (managed by the MSE), which exacerbates the government’s co-ordination challenges.
Recognition of prior learning is under development
Recognition of prior learning (RPL) is a tool for giving adults credit for skills they have acquired non-formally and informally through work or other experiences. Skills are identified, documented, assessed, and validated through a formal procedure, and the output can be a full or partial formal qualification. By giving adults credit for skills, they already have, RPL can shorten the time and effort required to engage in training, and therefore potentially increase participation in adult learning. Prior to the 2021 Act on Adult Education, Croatia’s RPL systems were based on 2007 legislation, underdeveloped and could only be used to validate practical skills to access and/or accelerate continuing education programmes, rather than to recognise theoretical knowledge or lead to a formal certificate. Moreover, there was no standardisation in the assessment of learning outcomes, a heavy reliance on work contracts that effectively excluded adults who acquired skills outside of formal employment, and no career guidance component (OECD, 2023[29]).
Working with the OECD, Croatia introduced a new comprehensive RPL system in 2024. The ministry and AVETAE developed rulebooks, methodology and implementation guidelines to support effective adoption of the new RPL system. Importantly, the new system is based on learning outcomes from CROQF, which helps ensure higher quality assessment, standardisation and recognition of acquired qualifications. However, Croatia’s current RPL system differs from those in many OECD countries because it only covers adult education and excludes higher education (ISCED 5+), which has its own, separate RPL system.
Use of digital education technology
Croatia has few regular data on the use of digital education technology in adult learning. The main use of digital education technology is online learning. During the pandemic, many adult education institutions switched to online teaching, with help and advice from AVETAE (European Commission, 2020[30]). In 2020, the AVETAE also launched a portal for online classes (https://nastava.asoo.hr/). The portal contains classes for practical subjects and encourages vocational teachers to develop online classes and share them with colleagues (Ministry of Science, Education and Youth, 2020[31]). Despite these efforts, many barriers to online learning remain. A lower-than-average share of citizens uses the internet for online courses, which may in part reflect Croatia’s low participation in adult education overall. However, low participation could also be caused by infrastructural challenges and a general perception that online education is of low quality (OECD, 2023[32]).
Main reform priorities
Croatia is working to upskill its adult population to help address skills needs
Croatia’s current skills agenda focuses on upskilling and reskilling the adult population to reduce labour shortages and meet future skills needs. To this end, the National Plan for the Development of Education and Training until 2027 sets out two clear goals: to raise employment outcomes and double the participation of adults in lifelong learning by 2030. Several of Croatia’s skills reforms in recent years are already helping support these goals. For example, CROQF helped systematise the development of occupational standards, qualifications and programmes. The new voucher scheme for adult learning now offers vouchers valued at around EUR 1500 for training that leads to approved micro- and partial qualifications in the areas of digital and green skills (Ministry of Science, Education and Youth, 2023[1]). Finally, new systems for RPL and quality assurance are being developed. However, Croatia continues to face major skills challenges. These include, among others, ensuring that the education and training system responds adequately to labour market needs, rebalancing funding in post-school education to support a diverse system of lifelong learning opportunities, and tackling the weaknesses in the transition from school to work that lead to low rates of employment for young people and high rates of NEET. At a time when the national economy is increasingly dependent on its existing adult workforce, Croatia will need to reduce regional disparities in education and employment, as well as reach adults with lower levels of education to fully achieve national goals.
Access and participation
Relatively few Croatian adults participate in adult learning
The participation rate in adult education and training in Croatia is below both the EU average and that of peer countries (see Figure 6.6). Within Croatia, participation is more common among younger adults and the better educated. Only 21% of Croatian adults with upper-secondary and post-secondary (non‑tertiary) qualifications (ISCED 3 and 4) participated in adult learning, compared to nearly 47% of those with tertiary qualifications (ISCED 5-8) (Eurostat, 2024[11]). While this pattern is also found in many other countries, it underlines the challenge of reaching adults in Croatia who need the most support to engage in lifelong learning.
Note: Peer countries refer to the average of Bulgaria, Czechia, Hungary, Latvia, Lithuania, Romania, Slovakia, and Slovenia. ISCED 3-4 refers to upper and post-secondary non-tertiary levels and ISCED 5-8 refers to tertiary level of educational attainment.
Source: Eurostat (2024[33]), Participation rate in education and training by sex, https://doi.org/10.2908/TRNG_AES_100; Eurostat (2024[11]), Participation rate in education and training by educational attainment level, https://doi.org/10.2908/TRNG_AES_102.
Barriers to participation in adult education include financial and non-financial reasons
The European Commission’s Adult Education Survey provides insights into Croatia’s low rates of participation in adult learning. In 2022, scheduling, cost, distance, and family responsibilities were the most common reasons cited by Croatian adults as barriers to participation in education and training (see Figure 6.10). The same pattern was found in EU and peer countries, except for distance. More than 10% of Croatian adults reported distance as a barrier to their participation in adult learning, compared to less than 5% in EU and peer countries (Eurostat, 2024[34]). While Croatia’s new voucher scheme is helping reduce financial barriers to adult education, these other factors will also need to be addressed to increase participation in lifelong learning.
Attitudes towards adult learning may also reduce participation
Evidence from a 2019 CEDEFOP’s survey reveals how respondents in Croatia and other EU countries feel about adult learning (including adult vocational courses). Only a little over half (57%) of respondents in Croatia see adult learning as important for personal growth and 35% rate the quality of adult learning as bad (CEDEFOP, 2020[35]). In comparison, 70% of all respondents on average (from EU-28, Iceland, and Norway) see adult learning as important for personal growth and only 24% rate the quality of adult learning in their countries as bad. In Croatia, lower shares of people also say that they believe adult learning is important for incomes, career progression and reducing unemployment (CEDEFOP, 2020[35]).
Quality and outcomes
Most adults have achieved upper-secondary education as their highest qualification
Most Croatian adults have at least upper-secondary education, very often in the form of vocational upper-secondary qualifications (see Chapter 2). This distribution resembles some peer countries like Czechia and Slovenia, but compared to the EU average, Croatia has a smaller share of adults who have attained tertiary education (ISCED 5+). Positively, younger adults are slowly narrowing Croatia’s tertiary attainment gap with EU peers (see Chapter 5) and there could be scope to expand this further through a greater ISCED 5 offer and more flexibility.
Skills shortages are emerging, partly because of emigration
Emigration has been a major driver of population decline in Croatia. While it initially helped to drive down high unemployment, it is now contributing to skills shortages. Although job vacancy rates remain low by international standards, a growing share of employers report that recruitment of skilled staff has become a major constraint (see Figure 6.7). A disproportionate share of Croatia’s employment growth over the last decade has been in low-skilled jobs (see Chapter 2), especially in elementary occupations in sales and services (OECD, Forthcoming[36]). Construction is one of the country’s fastest growing sectors (CEDEFOP, 2020[23]), but in 2022, more than half of employers in the Croatian construction sector reported low availability of labour to be a limiting factor for business (European Commission, 2022[37]). Croatia has responded to these trends in part by making job opportunities more accessible to immigrant workers (OECD, Forthcoming[36]).
Share of firms reporting that they see lack of availability of skilled staff as a barrier to investment (2022)
Note: Countries are ranked in descending order of the share of firms reporting they see availability of skilled staff as a barrier to investment.
Source: European Investment Bank (2022[38]), Investment Survey 2022, https://www.eib.org/en/publications/20220219-econ-eibis-2022-eu.
Many people face obstacles in their transition from education to work
Indirect evidence reveals significant obstacles in the transition from education to work in Croatia (see (OECD, Forthcoming[17])). Employment rates are particularly low among young and older workers, and the less educated (see Chapter 2). The share of young adults aged 15 to 29 who are NEET (11.8%) is slightly above the EU-27 average of 11.2% as of 2023 (Eurostat, 2024[21]). There are also large disparities within Croatia: the youth NEET rate in the less economically developed Pannonian region (16.8%) was more than double that of Zagreb (7.3%) in 2023 (Eurostat, 2024[39]). This pattern of under-employment, especially among youth and those with lower levels of educational attainment, could partly reflect dropout, failures on the part of the qualified to get jobs, as well as obstacles in finding training programmes that lead to work for those who have not done well in school.
There is room for improvement in information-processing skills among adults in Croatia
Data from the 2023 OECD Survey of Adult Skills (PIAAC), show that adults in Croatia have literacy, numeracy and problem-solving skills that are below the OECD average. When comparing Croatia to its regional peers that participated in the 2023 Survey of Adult Skills, the data show that Croatia does relatively well in literacy, but less so in numeracy and adaptive problem solving (OECD, 2024[40]). A significant proportion of adults are lower performers (score at or below Level 1 in the PIAAC scale) when it comes to these key information-processing skills (see Figure 6.8). At this level, adults can understand short texts and organised lists when information is clearly indicated, find specific information and identify relevant links but those below Level 1 can at most understand short, simple sentences. The shares are considerably higher for adaptive problem-solving (38.7% for Croatia, 29.3% OECD average) (OECD, 2024[40]). While 19.4% of adults in Croatia perform poorly on all three measures, above the OECD average of 18.1%, some regional peers including Hungary (22%) and Lithuania (23.9%) have more low performers, while others, including Czechia (15.8%) and the Slovak Republic (13.8%) have fewer.
Adults’ proficiency in key information-processing skills is typically strongly related to their educational attainment. Indeed, in all countries participating in the Survey of Adult Skills do adults with a tertiary qualification have higher proficiencies than those with upper-secondary educational attainment, while the latter have higher proficiency than those without an upper-secondary qualification. Croatia is one of the countries where the gap between adults with different education levels is smallest, even when controlling for socio-economic differences. In fact, adults without an upper-secondary qualification in Croatia have among the highest average literacy and numeracy proficiencies among all participating countries (ranking fourth and sixth, respectively). On the other hand, the higher educated adults perform relatively weak compared to other countries. In literacy, tertiary-educated adults in Croatia, for example, scored lower than adults with upper secondary attainment in Finland. This may suggest that Croatia does a good job in equipping learners with solid foundational skills at the early stages of education, but that the further accumulation of these skills at later stages of education is relatively limited.
Note: In Panel A, countries are ranked by average proficiency in literacy. Panel B shows the share adults how have low performance in three information-processing skills. Low performance is defined as scoring at or below Level 1 in PIAAC.
Source: OECD (2024[40]), Do Adults Have the Skills They Need to Thrive in a Changing World?: Survey of Adult Skills 2023, OECD Skills Studies, https://doi.org/10.1787/b263dc5d-en.
Despite good levels of digital skills, Croatia faces shortages of digital workers
In 2023, 35% of Croatians aged 25 to 64 had ‘above basic’ digital skills, measured by their ability to perform activities related to using the internet or software in a range of areas (e.g. for communication and collaboration or information and data literacy). This was higher than the EU average of 30% (see Figure 6.9). However, these relatively good levels of digital skills are not always used at work. Nearly half (49%) of jobs in Croatia have no or very low digital intensity, one of the largest shares among EU countries, but on par with regional peers like Lithuania (53%), Bulgaria (48%) and Hungary (48%) (CEDEFOP, 2022[41]). Croatia’s share of ICT specialists in all employment is also slightly below the EU average (3.7% vs 4.6%), with notable gender gaps (European Commission, 2023[42]). In Croatia, the share of women among ICT specialists is, at 14.5%, among the lowest in the EU (average across EU is 18.9%) (European Commission, 2023[42]). Without increasing the number of ICT experts, Croatian companies will struggle to fully benefit from the digital transformation.
Note: In Panel A, Countries are ranked in descending order of the percentage of adults aged 25-64 with basic overall digital skills in 2023. Digital skills are measured with a composite indicator based on selected activities related to internet or software use that individuals perform in five specific areas (Information and data literacy, Communication and collaboration, Digital content creation, Safety, and Problem solving). For more information of the definition of digital skills, see the source. In Panel B, Countries are ranked in descending order of the percentage of adult workers reporting great or moderate need for digital upskilling in 2021. The survey question corresponding to this response is 'To what extent do you need to further develop your computer/IT skills to do your main job even better?'. Respondents can choose among the following answers: 'To a great extent', 'To a moderate extent', 'To a small extent' or 'Not at all'.
Source: Eurostat (2024[43]), Individuals' level of digital skills (from 2021 onwards), https://doi.org/10.2908/ISOC_SK_DSKL_I21; CEDEFOP (n.d.[44]), European Skills and Jobs Survey, https://www.cedefop.europa.eu/en/tools/european-skills-jobs-survey/data.
Equity
Adults living in Croatia’s economically lagging areas have increasingly unequal access to education and training opportunities
Croatia is facing widening territorial disparities between Zagreb City and more rural parts of the country (see Chapter 2). More than 40% of Croatians live in non-urban areas, which have higher unemployment and poverty risks, as well as higher rates of population decline (OECD, 2024[45]). Croatians living in these areas also tend to be older and have lower educational attainment. As of 2023, only 4.1% of adults in Zagreb City and 7.7% Adriatic Croatia had not progressed beyond lower secondary school compared to an estimated 14.5% of adults in Northern Croatia and 17.3% in Pannonian Croatia (Eurostat, 2024[39]). This context perpetuates economic stagnation in Croatia’s lagging regions, as investments tend to gravitate towards areas with a more skilled workforce (OECD, 2024[45]).
Several OECD countries are facing similar challenges and target adult education and training policies to reskill or upskill the workforce in disadvantaged areas. In Croatia, this targeted approach is less evident, partly because of the way adult education providers are distributed across the country. A 2020 survey found that one third of Croatia’s adult education institutions were in Zagreb City (Eurydice, 2024[9]). In part this pattern may reflect higher demand for adult education in urban areas especially given the need for individuals to fund their own training. However, distance is often cited as a barrier to participation in adult learning in Croatia and adult education institutions are unevenly distributed across the country (see Figure 6.10) (Eurydice, 2024[9]). This seemingly unequal access to education and training opportunities contributes to regional disparities in rates of participation in adult learning: adults living in cities (30.5%) had higher rates of participation than those living in rural areas (22.4%) (Eurostat, 2024[19]).
Share of population aged 18-69 wanting to participate in education and training, by reasons for not participating, 2022
Note: Peer countries refer to the average of Bulgaria, Czechia, Hungary, Latvia, Lithuania, Romania, Slovakia, and Slovenia. The average of peer countries was calculated with missing data in certain categories for some of the peer countries.
Source: Eurostat (2024[34]), Population wanting to participate in education and training, by main reason for not participating and age, https://doi.org/10.2908/TRNG_AES_180.
Croatia’s gender gaps in education and employment vary across the life cycle
Croatian women have higher levels of educational attainment (see Chapter 5) and are more likely to participate in adult education and training compared to Croatian men (see Figure 6.6). Despite this, women report facing participation barriers at higher rates than men, with family responsibilities constituting a major challenge (see Figure 6.11). Compared with men, Croatian women also spend nearly 20 more hours per week on unpaid work – the highest difference found in OECD European countries (see Chapter 2) (OECD, Forthcoming[36]). However, as employment rates are relatively low for both women and men, the gender employment gap in Croatia is relatively narrow at around 10 percentage points, compared to 15 percentage points across the OECD (OECD, Forthcoming[36]). Some 74.5% of Croatian men are employed, compared to 65% of Croatian women.
Difficulties that prevented Croatian respondents from participating in adult education and training, by sex, Adult Education Survey 2022
Note: Each white circle represents a 20-percentage point increase in the share of respondents who reported being affected by the difficulty.
Source: Croatian Bureau of Statistics (2024[46]), Adult Education Survey 2022, https://podaci.dzs.hr/2024/en/77477.
Inequalities in proficiency in information-processing skills are relatively small among adults
Data from the 2023 OECD Survey of Adult Skills show that inequalities between adults for key information-processing skills are relatively small compared to other OECD countries. For example, the difference between the 90th and 10th percentile of the national skills distribution for literacy, numeracy and adaptive problem solving is smaller in Croatia than on average across OECD countries (although for literacy the difference between Croatia and OECD average is minimal) (OECD, 2024[40]). However, inequalities are substantially larger compared to regional peers Lithuania and the Slovak Republic.
Gender differences in skills proficiencies are small, and Croatia is one of the only countries covered by the survey where men and women have the same average numeracy proficiency (also when controlling for socio-economic differences) (OECD, 2024[40]). For literacy, it is one of the countries when the gap between women and men is largest (in favour of women), although that proficiency gap is relatively small compared to many countries. Proficiency differences for adults with immigrant backgrounds in Croatia are also smaller than the OECD average. Moreover, Croatia is one of very few countries where native‑born adults of foreign-born parents have similar proficiencies than native-born adults of native-born parents.
Quality of programmes and outcomes: Diversifying adult learning opportunities to better meet the needs of individuals and the economy
Declining numbers of young people and high rates of emigration for the best educated mean the Croatian economy has become increasingly dependent on its existing adult workforce, and therefore on reskilling and upskilling that workforce. However, Croatia has among the lowest rates of participation in adult learning across the EU (see Figure 6.6). The National Development Strategy until 2030 recognises this challenge and aims to double Croatia’s adult learning participation rate to converge with EU levels. In doing so, the intention is to prioritise the least educated and those not in employment (Žiljak, Alfirević and Vučić, 2023[47]). Croatia has already taken steps to expand provision of adult education and training, especially through the new voucher scheme. Further efforts will be needed to diversify the learning offer so that it better matches the varying needs of different adults, especially those with low levels of educational attainment, as well as the needs of sectoral and regional labour markets. Here we provide suggestions of the directions these efforts might take, drawing on OECD evidence and experience.
Recommendation 6.1. Expand adult learning to better serve the lower educated
The training needs of adults are more diverse than those of young school-leavers. Some adults will want to return to education and training because they missed out in early life or seek to have skills they acquired informally be recognised and certified. Some will want to, or must, reskill. Others will want a specific job skill, to deepen their professional skills, or develop the practical skills and knowledge necessary to run a small business. Many will also want to manage their education and training needs around work and family responsibilities through part-time study at evenings and weekends, or online. Those with lower levels of educational attainment must overcome multiple barriers to participation, especially if they are in low paid jobs with long hours or live far from available education and training opportunities. At present, Croatia’s adult learning system is not reaching the most disadvantaged adults. The government can build on the skills reforms it is already undertaking to help further address this challenge.
Addressing participation barriers for adults with lower educational attainment
In covering the cost for some adult education and training opportunities, Croatia’s new voucher scheme is starting to address one of the main barriers to participation in adult learning. However, this policy does yet not tackle some of the wider factors that may prevent Croatian adults from participating in education and training, such as time constraints and distance from learning opportunities. Such barriers risk making adult education and training programmes less accessible and attractive, especially for those who are unemployed, have lower educational attainment and/or are in low-skilled jobs. Addressing these non‑financial barriers will be important if the planned expansion of the voucher scheme is to go beyond serving advantaged adults and reach people most in need of upskilling and reskilling. OECD countries have developed a range of targeted measures to overcome these obstacles (see Box 6.1). Key elements Croatia could consider in further developing its policies are:
Offering targeted advice and guidance, focused for example on those who are NEET. This might, for example, build on the social mentoring service under the Social Welfare Act 2022 to provide targeted advice to young people at risk, including those who are NEET;
Providing government support to employers, so firms can grant workers the flexibility to engage in education and training (e.g. by offering training leave);
Accrediting workplace programmes, to recognise and encourage education and training in the workplace, which in turn would also help to diversify provision since Croatia has a relatively high share of formal institutions that provide adult learning opportunities; and by,
Encouraging more short and modular programmes (see Recommendation 6.2), so workers can more easily combine work and training;
Outreach to those who are remote from learning opportunities, not only using distance learning, but also making in-person learning more available locally.
The below table draws on the OECD programme of work on adult learning and provides a snapshot of different ways that OECD members encourage lower educated adults in their countries to become more engaged in lifelong learning.
Source: OECD (2019[5]), Getting Skills Right: Future-Ready Adult Learning Systems, https://doi.org/10.1787/9789264311756-en .
Strengthening the recognition of prior learning
Croatia is working to strengthen its RPL system. This is a timely reform considering the rapid expansion of Croatia’s immigrant workforce who may have acquired skills or certifications abroad. Other skills reforms, like the new voucher system and changes to the qualifications framework suggested by this review (see Recommendation 6.2), can complement Croatia’s new RPL system. For example, a recent OECD study suggested that Croatia could extend vouchers to cover RPL services and/or allow adults to receive partial credits through RPL that they can then apply to short and modular qualifications (OECD, 2024 [Forthcoming][48]). However, establishing a comprehensive RPL system is challenging for many countries. Below are some policy elements from OECD experience that Croatia could consider as it works to further implement this reform:
Requiring large institutional providers to offer RPL. Institutional providers, starting with higher education and upper secondary VET providers and eventually other adult education and training providers should be required to offer RPL. Such provision would allow individuals to obtain course exemptions when undertaking a full programme or a full or partial qualification without having to complete course requirements. Funding arrangements would need to be organised to cover the costs associated with RPL processes.
Prioritising the development of RPL processes in certain sectors. The most effective approach for upskilling in some sectors, such as hospitality, may be to develop qualifications obtainable through passing examinations or assessments without required programmes of study (see Recommendation 6.2). This would allow people with existing skills to obtain qualifications directly or with some top-up training to fill any gaps in their competences.
Developing an RPL programme for immigrant workers. In sectors such as tourism and construction, Croatia is now making extensive use of immigrant workers. To make most effective use of the existing skills of these workers, an RPL programme targeted at these workers, possibly organised by sector, could be helpful. Such a programme would seek to certify the existing skills and qualifications of newly arrived immigrant workers, facilitating their integration and contributions to the Croatian economy.
Recommendation 6.2. Develop mid-level qualifications that complement but differ from higher education
Several OECD countries have innovative mid-level programmes, outside higher education, that aim to facilitate upskilling and reskilling. In most cases, these programmes cater to adults (see Box 6.2). In Croatia, mid-level programmes and qualifications (ISCED 4 and 5) are neglected and remain relatively underdeveloped. To support a more diverse offer of mid-level qualifications, and to foster innovation in adult learning, Croatia could consider two policies:
Developing a centrally managed fund to help providers respond to local skills needs
Adult learning programmes need to respond to local circumstances, especially in countries like Croatia where there are large territorial disparities and relatively fragmented governance arrangements (see Chapter 2). To help meet local skills needs, Croatia could develop a central fund to encourage greater provision of mid-level qualification programmes (see example from Sweden in Box 6.2). A virtue of this model is that training providers must seek out and work with employer partners when bidding for funds to develop training programmes. In the first instance, Croatia would need to develop a framework for training that sets out required features, such as employer partner(s) participation, minimum periods of work placement with those employers, and the minimum number of teaching and training contact hours. This central fund could be informed by data on regional labour market needs from the Croatian Employment Service and might first be piloted in areas where there are clear skills shortages (e.g. junior hospitality management positions in tourist areas). The fund would require a modest budget initially and after careful evaluation and monitoring, could be gradually scaled up to other sectors and regions.
Croatia’s Regional Centres of Competence in VET might play an important role in making good use of such a fund. For example, they would be well placed to collaborate with employers to develop proposals and deliver high quality programmes that are adapted to local needs. Some care would be needed to ensure that the funding arrangements retain the benefits of competition when Regional Centres bid for funding alongside providers who have not benefited from EU funding.
Establishing a system of professional examinations
Croatia could also develop professional examinations in areas where there is support from professional or employer groups. In some OECD countries, Level 4 and 5 examinations provide a useful complement to the upper-secondary VET system by allowing for a higher-level vocational qualification within the same field. Switzerland provides an example of this policy approach (see Box 6.2). Such examinations represent one way of recognising prior learning, since an experienced practitioner can have their skills certified through the examination, often following some targeted ‘top-up’ or stackable learning. In Croatia, this model might be developed initially through collaboration with some key employment sectors where employers see the advantages of using exams to encourage upskilling. Some form of co-financing, in which governments, individuals and employers share in the costs of developing and implementing the programmes could be piloted as part of the process.
Administering professional examinations to validate practitioner skills in Switzerland
In Switzerland, professional examinations, developed by professional and employer bodies, at level 4, 5 and above, allow skilled practitioners to certify specialist knowledge and skills. They may, for example, demonstrate the knowledge required to run a small business, or validate competence in legally regulated areas such as, electricians and tank inspectors. Students typically take non-mandatory preparatory courses for the examination, but the qualification is obtained purely through success in the examination.
Collaborating with local industries to develop market-responsive post-schooling programmes in Sweden
In Sweden, higher vocational education (HVE) programmes at level 4 and 5 are developed locally in co-operation with industry to meet local, and sometimes temporary, skills needs. They are 1-2 years in length and work placements represent around 25% of each programme. Programmes are concentrated in business finance, administration and sales, and manufacturing technology. HVE students are usually adults: in 2021, 42% were between age 30 and 45. The programmes emerge from local proposals, and the National Agency for HVE decides which proposals to accept through a competitive process. For selected proposals, funding is provided for a maximum of 5 years.
Integrating work-based learning after compulsory education in Austria and England (United Kingdom)
Austria has well-developed work-based learning pathways. Almost 40% of young Austrians enter recognised apprenticeships after their compulsory education, and a further 40% enrol in vocational colleges. Vocational colleges offer five-year level 4 and 5 programmes in a range of commercial and technical vocational subjects, with mandatory work placements. Final assessments for these programmes often involve projects undertaken in collaboration with companies. While many countries limit their work-based learning to the upper secondary level or younger students, in England (United Kingdom), apprenticeships at levels 4, 5 and 6 are the fastest growing parts of the education and training system and are often pursued by already-employed adults who are using apprenticeship to upskill.
Source: Fazekas and Field (2013[49]), A Skills beyond School Review of Switzerland, https://doi.org/10.1787/9789264062665-en; Swedish National Agency for Higher Vocational Education (2023[50]), Higher Vocational Education, https://www.yrkeshogskolan.se/in-english/#stycke1; Field (2018[51]), The Missing Middle, http://www.gatsby.org.uk/uploads/education/the-missing-middle-higher-technical-education-in-england.pdf.
Equality of opportunity and access: Supporting the most disadvantaged Croatians to engage in lifelong learning
After completing school education, equality of opportunity for learning becomes more concerned about access to state-supported education and training, in a context where some have little access and others may drop out before completing their programme. This section looks at two key challenges in Croatia. First, the imbalance and limited funding for post-school education. Addressing this challenge requires a more equitable funding framework to support a diverse range of adult learning opportunities in which lifelong learners receive support alongside young adults who pursue full-time higher education. Second, employment rates for young adults are worryingly low in Croatia, signalling obstacles in the school to work transition, and/or dropout. Many types of education dropout are unmeasured in Croatia, despite indications that dropout may be high at tertiary level (see Chapter 5). Few measures are in place to tackle the problem and a stronger government response is needed. This will require working across levels of the education system to better understand the causes of dropout, what might be done to prevent it, and what should be done to help those who do dropout to reintegrate into education, training, and employment.
Recommendation 6.3. Develop and implement a new funding framework for all post-school education and training offers
There have been slight increases in Croatia’s total government spending on education (as a share of GDP) since 2019 (see Chapter 2). However, the public budget for education faces significant demands on early years to support investments in expanding early childhood education and care (ECEC) and Whole Day School, which are being prioritised (see Chapters 2-4). As a result, the amount of public funding for post-school education in Croatia is unlikely to see significant increases in the coming years and may need to continue relying on EU resources to support initiatives like the expanded voucher scheme. The challenge of adequately funding post-school education and training is common internationally, as the equity advantages of early and basic education for all are usually given weight relative to post-school education that only benefits some.
Within this context, Croatia will need to consider how to rebalance available post-school funding, most of which at present funds younger adults in full-time higher education. This current funding imbalance is inequitable for Croatian society and misdirected as a means of serving the Croatian economy. Chapter 4 explained measures being taken within higher education to address this challenge. OECD experience suggests that establishing common funding principles for all post-school education and training, and the policy mechanisms to implement these, could also help support a more diverse range of post-school learning opportunities for adults.
Establishing core principles for a new funding framework for post-school education and training
To create a more equitable framework for public spending on post-school education, Croatia will need to first agree on core principles. This would allow the government to better steer the available funding across different types of adult learning opportunities, as well as bring stakeholders together behind a shared vision for the post-schooling sector. Consistent funding principles could include the following elements:
Shared funding. As the benefits of adult learning are shared between individuals, firms, and society, many countries use a balanced mix of co-financing arrangements to share the costs of adult learning. Disadvantaged individuals may find it difficult to contribute and need more support (OECD, 2019[52]).
Targeted funding. Recognising the multiple factors that may hinder participation in adult learning among disadvantaged adults, Croatia should prioritise financial resources - from both the state budget and other sources - to fund a dedicated programme for the education and training of adults with the most important skills gaps, as there is currently almost no provision for this group. Prioritising programmes that upskill and reskill the existing workforce, where the rate of graduate emigration is less, would not only support some of the most disadvantaged adult learners but also the Croatian economy.
Incentivised funding. Funding should offer incentives for institutional providers to deliver quality education and training.
England (United Kingdom) is currently introducing a 'lifelong learning entitlement' (LLE) to reform the way learners can access funding for post-18 education. From 2025, this will establish a single funding system to help learners “pay for college or university courses, and train, retrain and upskill flexibly over their working lives”. Under the LLE, individuals are eligible for a lifetime loan of GBR 37 000 (United Kingdom Pounds), which they can use for university studies or for future training throughout their careers. The LLE covers ISCED levels 4-6 and can be used for both full qualifications and individual modules. While the entitlement is to a loan, and not a grant, the loan is on favourable terms, supported by a subsidy to ensure low-earning graduates do not commence repayment immediately. Debts are eventually written off for those unable to repay. This funding initiative has potential to support flexible pathways and enhance access and participation in adult learning. However, this will depend on equivalent levels of flexibility within the broader adult learning system, including credit transfer systems that allow modules to count towards broader qualifications over time.
Source: English Department for Education (2024[53]), Lifelong Learning Entitlement Overview, https://www.gov.uk/government/publications/lifelong-learning-entitlement-lle-overview/lifelong-learning-entitlement-overview.
The value of having such principles is that they would allow all post-school programmes (in principle both formal and non-formal) to be funded according to the same rules, thus in itself delivering an important form of equity between learners pursuing different types of education and training. They would therefore be applied in higher education and in adult learning. England (UK) has taken this approach one step further by establishing a common funding framework for all types of education and training available to people over age 18 (see Box 6.3).
Determining the policy mechanisms needed to implement the new funding framework
Croatia currently lacks a coherent system to provide state funding for adult learning. It now needs to create one, building on the (still very preliminary) experience of the voucher scheme. International evidence on good practice in funding policies for adult learning is scarce. However, experiences from some OECD countries can provide promising insights as the Croatian government works to develop its new funding arrangements for adult learning (see Box 6.4). Such policies should be implemented incrementally, with careful monitoring and evaluating, and could involve:
Individual Learning Accounts. The Croatian government is already discussing the possibility of expanding the new adult voucher scheme into an individual learning account (ILA). These schemes have several advantages and disadvantages, so countries must often make trade-offs when designing their policies (OECD, 2019[52]). In Croatia, an ILA could help expand funding for adult learning by leveraging contributions from individuals and employers, as well as direct government contributions. Such an approach could also enable Croatia to have a more targeted approach to its voucher scheme by redirecting subsidies to certain individuals (e.g. disadvantaged adults) and programmes (e.g. in areas of skill shortages). It could also introduce more flexibility and portability in training rights, offering more individual choice on when to train and allowing rights to transfer across different jobs and types of employment (OECD, 2019[52]). On the other hand, the deadweight costs of ILAs can be important, which is especially concerning since the benefits of Croatia’s voucher scheme already seem to favour the best educated. Accompanying ILA policies with policies like targeted participation schemes, quality assurance and offering career guidance can help address this challenge (OECD, 2019[52]).
Funding to providers who offer mid-level qualifications. One of Croatia’s policy challenges is how to integrate any new funding mechanism for adult learning with higher education funding. For example, given that bachelor’s degree programmes (ISCED 6) are usually tuition-free for full‑time students and may also involve other elements of student support, new mid-level qualification programmes (at ISCED 4 and 5) will need similar levels of generosity to realise their potential. This will require changes in funding arrangements for higher education institutions to help reduce competition between these levels of education and support more diverse post-school learning opportunities for adults.
Leveraging private investment. While Croatia already offers tax incentives to encourage employers to offer training, some OECD countries use other measures to encourage training by employers. These policies include training levies, direct government subsidies that share the costs of training with employers, as well as establishing legal rights to training leave (see Box 6.4).
Incentivising employers to further invest in adult learning can help address skill gaps within industries and the broader economy. These incentive mechanisms may take various forms, including direct subsidies. For example, employers in the Czechia and Norway, can receive government subsidies to cover training costs, Norway also covers the wages of employees on training leave. Training levies, typically calculated as a percentage of payroll, offer another model of financial incentives for employers to provide training. Such schemes can be found in several OECD countries, which allow employers to use the collective pool of levy funds to pay for training. Inversely, levy-exemption schemes, found for example in Belgium, Greece, and Spain, mean that employers who undertake sufficient training do not have to pay the levy. Incentives programmes must be carefully designed to avoid common pitfalls, including disproportionately benefitting employees in large workplaces that have more resources to access and use incentives. Care is also needed to ensure that employers use financial incentives to fund additional, rather than already existing, adult learning opportunities and to monitor the overall impact of such programmes.
Source: OECD (2019[5]), Getting Skills Right: Future-Ready Adult Learning Systems, https://doi.org/10.1787/9789264311756-en.
Recommendation 6.4. Enhance evidence on dropout and develop policies to help prevent it
While dropout from education appears concentrated in Croatia’s higher education sector, factors that shape it begin earlier. Croatia’s success in achieving high rates of completion from upper secondary education masks weaknesses in how well some schools are preparing students for further education and training (see Chapter 4). This has negative implications for both individuals and the economy. Young Croatians who leave the education system – either because they finish their formal education at age 18 or transitioned to higher education but did not earn a qualification - tend to have lower labour market outcomes. Adults with upper-secondary education as their highest qualification are also more likely to be unemployed, NEET or in low-skilled (and lower paid) jobs compared to their peers with higher levels of education attainment (see Figure 6.5). This creates a cycle whereby adults with lower educational attainment are less likely to participate in adult learning, making reskilling and upskilling especially difficult once they are out of the education and training system.
The measures Croatia is taking to address dropout in higher education, though promising, are currently inadequate to fully address the challenge. In particular, the government lacks the type of student-level data that would enable a better understanding of factors that contribute to dropout, set more meaningful planning targets than what is currently possible, and ultimately, introduce policies to facilitate learner transitions through education and training and into work. Moreover, while reforms are underway to improve the labour market relevance of upper secondary VET and tertiary education that will, in the longer term, improve transitions from education to training and employment (see Chapters 4 and 5), there appears insufficient attention to the types of immediate interventions that could improve engagement, retention and reintegration for young people today. In further developing policy responses to address this issue, Croatia can look to the experience of OECD countries that have more systematically measured dropout and adopted policies both to prevent dropout in the first place and reintegrate people who have dropped out back into education, training, or employment.
Strengthening the information base on student characteristics, pathways and outcomes to help address dropout
Croatia needs better data on how students transition through educational pathways across levels, programmes and institutions, and their resulting outcomes. While headline data suggests Croatia’s early school leaving is low, this EU indicator only refers to the share of 18–24-year-olds who have no more than lower secondary qualifications and does not provide direct data on student dropout. Collecting better data, on dropout, but also on student characteristics and pathways more generally, could also provide Croatia with valuable information to better understand and help improve young people’s transitions from school to further education and work.
To address this challenge, the Croatian government could conduct a mapping exercise to link data on student enrolment in school and higher education with employment databases to help identify vulnerable subgroups within the NEET population (CEDEFOP, 2023[54]). Some OECD countries also use tracer surveys that follow all leavers from education and training programmes, including both dropouts and successful graduates. While Croatia’s is planning a research project to better understand dropout in higher education, several OECD systems monitor dropout from a wider range of education and training programmes. For example, Australia and Sweden collect and publish regular data on dropout rates in vocational education and training (National Centre for Vocational Education Research, n.d.[55]) (Statistics Sweden, n.d.[56]). England (United Kingdom) uses tracer surveys to monitor dropout rates in apprenticeship programmes (DfE, 2022[57]). Collecting background information on higher education entrants, such as whether they completed a general or VET upper secondary programme, could also provide Croatia with valuable data to better understand and help improve young people’s transitions from school to further education and work.
Establishing a cross-sectoral strategy to combat dropout and promote reintegration
Once Croatia has stronger data and analysis on learner transitions and dropout, the government will be able to establish a strategy to help prevent dropout both through broad system-wide policies and in the practices of individual institutions. Box 5.5 provides some examples of related policy measures taken by OECD countries. More specific actions Croatia could consider include:
Supporting student transitions. Policymakers in upper secondary VET and higher education will need to work together to secure more effective transitions for students. This may involve measures within upper secondary VET to ensure that those with the Matura are better prepared for higher education, and, within higher education, to offer targeted support to those with VET backgrounds.
Incentivising institutions to reduce dropout. Strategies to tackle dropout are often best developed by institutions in the light of variable local patterns of dropout. Governments can encourage these efforts by offering incentives for institutions to reduce their dropout rates, including financial incentives.
Developing reintegration programmes. This could be linked to new initiatives such as the creation of a special adult learning programme for those with lower educational attainment (as recommended above), and to programmes already under development by the Ministry of Labour to reintegrate NEETs. During the review mission, promising initiatives undertaken by local authorities were mentioned, which could also be replicated more widely.
Effective dropout prevention measures are often multi-pronged. For example, in the Netherlands, a carefully evaluated programme found that measures to report truancy, offer mentoring, extend school hours to offer additional cultural and sports activities, and provide career guidance were all helpful in reducing school dropout rates.
In the United States, the City University of New York provided community college students with a range of supports including counselling, tutoring, and financial assistance, and in a randomised trial demonstrated that completion rates had nearly doubled compared with a control group.
France establishes alliances ('alliances éducatives') to prevent student dropout, involving in-school teams, families and civil society (e.g. youth centres), in partnership with regional and national authorities. Tools, training and awareness-raising campaigns are also available to help identify at-risk youth. Guidance and reintegration centres offer further training for those who have been out of education for more than a year. Such whole-of-community approaches need to be underpinned by shared goals and priorities, and clearly defined processes among different partners and initiatives.
Source: De Witte and Cabus (2013[58]), “Dropout prevention measures in the Netherlands, an explorative evaluation”, http://dx.doi.org/10.1080/00131911.2011.648172; J-PAL (2020[59]), Reducing community college dropout through comprehensive supports, https://www.povertyactionlab.org/policy-insight/reducing-community-college-dropout-through-comprehensive-supports-0. French Ministry of National Education and Youth (n.d.[60]), Agir contre le décrochage scolaire [Acting against school dropout], https://www.education.gouv.fr/agir-contre-le-decrochage-scolaire-alliance-educative-et-approche-pedagogique-repensee-8987.
Good governance: Strengthening the co-ordination and analytical capacity that underpins Croatia’s skills policy
Effective governance of any skills system depends on coherent leadership to manage the system, mechanisms to ensure that provision is in line with the needs of the labour market, and the capacity to collect and analyse data to guide the system’s development. While Croatia has made progress through its ongoing education and skills reforms, significant challenges remain on these fronts. By the standards of comparable countries, evidence suggests that co-ordination of skills policies across the Croatian government is weak (see Figure 6.3); and while skills anticipation measures are commendable, the use of information collected is inadequate. Moreover, the Croatian MSEY, unlike many international peers, lacks dedicated analytical capacity. This section recommends potential avenues for improving the governance of the Croatian skills system.
Recommendation 6.5. Improve governance arrangements in the Croatian skills system
Croatia’s current governance arrangements for skills policy face several challenges. First, the fragmented responsibilities of MSEY and the Ministry of Labour make it difficult to align training offers with labour market needs because the process leading from the creation of standards to programme implementation is cumbersome. Engagement of social partners is also relatively weak and fragmented, creating inefficiencies in the development of skills policies. These challenges are compounded by weak quality assurance mechanisms and lax certification procedures that have contributed to a proliferation of adult education and training programmes and providers (World Bank, 2019[24]). OECD experience can support Croatia in addressing these challenges by establishing more integrated governance arrangements and setting targets for the overall number of occupational standards.
Establishing a single Croatian Skills Agency to improve skills policy co-ordination
Croatia’s currently separate processes for developing occupational standards and qualifications across different bodies and responsible ministries is inefficient and creates policy co-ordination challenges. Some OECD countries have addressed similar governance challenges by establishing more integrated governance arrangements for skills policy. For example, the Estonian government delegates responsibility for occupational standards and the associated qualifications to a national vocational qualification authority (see Box 6.6). Following this model, Croatia could consider building on the mandate of the AVETAE, which already carries out some of these responsibilities, and integrating other parts of the currently separate government agencies that manage skills policies to a single Croatian Skills Agency (see Figure 6.15).
The proposed Skills Agency would be accountable not only to the MSE, but also to the Ministry of Labour, resolving the complicated and somewhat arbitrary division of labour between these ministries. This change could help streamline and improve policy co-ordination. In addition to leading a more integrated process for developing occupational standards and qualifications, the new Croatian Skills Agency could also manage Croatia’s developing programme for adult learning, including expansion of the adult voucher scheme. Other responsibilities could include taking on apprenticeship policies, which at present are managed by Croatia’s Ministry of Economy and Sustainable Development and could be integrated into the wider VET and adult learning system. However, the skills anticipation functions of the CES should not be integrated into this new Skills Agency to help preserve the independence of CES recommendations that deserve a government response (see Recommendation 6.6).
Social partners could also be represented in the governing body of the new Skills Agency, building on the existing model of including them in the AVETAE Governing Council. Broadening this arrangement would replace the currently indirect advisory role of social partners – split across multiple government bodies - with a single government focal point to facilitate their more direct and meaningful engagement. Within this arrangement, the social partners could be actively involved not only as members of the Croatian Skills Agency board, but also continue to be involved in the sectoral and occupation-specific working parties responsible for developing occupational and qualification standards. England (United Kingdom) provides an example of how the government can make full use of employer-led groups to help design and manage skills policies (see Box 6.6) (Institute for Apprenticeships and Technical Education, n.d.[61]).
Centralised approach to skills policy co-ordination in Estonia
In Estonia, a single body is responsible for developing occupational standards, qualifications and assessments. The Estonian qualifications authority, called Kutsekoda, is managed by a collaboration of ministries (Education, Social Affairs and Economy), as well as employer and employee organisations, including trade unions. Through its OSKA (Oskuste arendamise koordinatsioonisüsteem) programme, Kutsekoda surveys the future needs for skills and labour in Estonia and ensures these skills are integrated into education. Kutsekoda coordinates 14 Occupational Qualifications Councils (OQCs) in developing sector-specific standards, issuing licenses, and awarding qualifications. Qualifications, created by experts from employer groups or professional associations, cover ISCED levels 2-7 and are reviewed every 4 to 5 years. Assessments of occupational competence are undertaken separately, through around 100 awarding bodies, granted the responsibility for assessments and certification in different occupational sectors.
Employer engagement approach to qualification development in England
In England (United Kingdom), the Institute for Apprenticeship and Technical Education is an Arm’s Length Body of the Department for Education which works with employers to develop and revise apprenticeships and technical qualifications. The Institute convenes expert groups of small to large employers to develop occupational standards, as well as apprenticeship standards and assessment plans which form an apprenticeship qualification.
Source: Kutsekoda (2023[62]), Occupational standards, https://www.kutsekoda.ee/en/occupational-qualification-standards/; Institute for Apprenticeships and Technical Education (n.d.[61]), Shaping Skills Training, https://www.instituteforapprenticeships.org/; OECD (2024, forthcoming[63]), Vocational Qualifications in International Perspective.
Using modularisation and specialisms to merge qualifications and facilitate recognition of prior learning
Many countries struggle to manage a proliferation of vocational qualifications, often driven by niche interests. Employers sometimes want qualifications to fill narrow and/or ephemeral job roles, but workers and the broader economy need qualifications that support occupational mobility and career development (Field, 2023[64]). It was reported that previously in Croatia, weaknesses in the qualifications procedures have contributed to an excessive number of VET and adult education programmes and providers (World Bank, 2019[24]). One way Croatia could handle this proliferation is through modular qualifications, whereby a single qualification is defined by a mandatory core of modules, alongside optional modules which define separate specialisms. Germany adopted this approach, merging specialisms like pig breeder and shepherd into an animal care apprenticeship, which helped reduce the number of apprentice occupations from around 430 in 1969 to around 320 today (OECD, 2024, forthcoming[63]).
While modularisation policies can help better manage the number of qualifications, it also has other advantages related to the quality of programmes (OECD, 2023[29]). In Austria, for example, it is used to respond quickly to changing skills demands through new specialist modules, while constraining the total number of apprentice qualifications (Austrian Federal Ministry of Science Research and Economy, 2014[65]). Modularisation can also facilitate recognition of prior learning in respect of subcomponents of a qualification, and therefore exemption from the associated course requirements. Such exemptions may help to encourage adults that have lower educational attainment with some skills but few qualifications to return to formal education. In Croatia, the new system of RPL is very linked to micro-credentials (and the voucher scheme) and could be built on in the future.
Recommendation 6.6. Strengthen capacity to analyse and use skills data
Good skills policy needs to be informed by evidence. This requires analytical skills to collect, appraise, and manage evidence and data. Many OECD countries routinely employ technically trained specialists within ministries of education, and/or in closely linked government agencies to manage and develop data, conduct analysis, and evaluate education and training policies. Some also have protocols in place to ensure that data and analysis explicitly feed into policymaking decisions. During the review mission, actors involved in substantial reforms across Croatia’s education and training system showed enthusiasm for change and a desire for innovation. However, this needs to be balanced by a rigorous scientific approach to pilot, evaluate, and modify (or even abandon) initiatives in response to experience. Some ways that Croatia could use skills data more effectively and help reinforce analytical capacity overall, are described below.
Ensuring that education and training providers respond to the Croatian Employment Service’s recommendations on enrolment quotas in different fields
The CES is required to provide recommendations for the allocation of training places to help ensure the numerical mix of train places aligns with labour market needs. If these recommendations are justified, they should be implemented. Conversely, if they are not justified then steps should be taken to revise the methodology used by the CES. In either case, the statutory requirement for CES to provide recommendations deserves a response. It was reported that new measures, from 2022, now require upper secondary VET providers and founders to plan enrolments in accordance with CES recommendations. This measure is welcome, and to ensure its full implementation, the MSEY could publish an annual response to the recommendations of the CES, setting out how they have been implemented, and if any recommendations have not been acted upon, setting out the reasons for not doing so.
When the MSEY then sets quotas for the numbers of training places in response to CES recommendations, this should, if it is to be meaningful, correspond to the flows of funds to provider institutions. While this is already the case in upper secondary VET, the number of training places allocated in higher education has no direct impact on institutional funding. This means that HE institutions have no financial incentive to develop provision in response to changing labour market demand (see Chapter 5). More coordinated policies across the Croatian education and training system are needed to encourage responsiveness among providers.
Establishing an analysis unit in the Ministry of Science, Education and Youth, staffed by technically qualified individuals
The MSEY currently lacks technical expertise, and statistical data on education is usually handled in other agencies. There are also some striking gaps in data availability – for example on dropout rates and rates of return to post-secondary programmes. Many OECD countries have experience in strengthening capacity for skills analysis, typically by hiring statisticians to manage and develop education indicators, economists to address issues of cost-effectiveness, incentives and economic returns to education, and social researchers to help interpret and guide studies on matters such as school effectiveness or evaluations of new initiatives and pilots (see Box 6.7). Some of the tasks and responsibilities Croatia’s proposed analysis unit could take on include:
Undertaking a data audit. This would identify gaps in the available data and develop new education and training data in response. Education and training statistics are currently largely provided by the National Bureau of Statistics, which provides many basic enrolment statistics. However, more complex, and granular data appear to be lacking, there are reports of inconsistencies between data sets and statistics on transitions and flows through the system are largely absent.
Managing evaluation and monitoring of policies and programmes. Effective policy making requires a flow of information about whether policy actions are working and analysis of any failures. This allows policymakers to make changes to policies in response to experience. EU funding typically also requires accompanying evaluations. Such evaluation is technically challenging, and undertaking, or managing such evaluations requires specialist expertise.
Managing externally contracted analysis and research. Some research and analysis can and should be contracted out to universities and other bodies with relevant technical capacity. However, the task of identifying research requirements, developing, and managing externally contracted research and analysis itself requires technical expertise.
Making full use of the results from PIAAC. Published in December 2024, results from this Survey of Adult Skills provide a valuable source of information, comparable across OECD countries, and offer evidence to help understand not only the basic skills, but also the adult learning and employment experience of Croatian adults. Going beyond headline indicators to explore the data and address adult skills challenges faced by Croatia will require strong technical capacity.
Many OECD countries have ministry departments that support education data analysis and use. In Austria, the Ministry of Education Science and Research includes a department for educational development and monitoring. This unit prepares statistical reports, monitors data on schools, and develops tools for assessing skills. In Estonia, the analysis department within the Ministry of Education and Research manages a comprehensive education database. It undertakes ad hoc work for the Ministry and prepares an annual report on the education system, along with other reports on issues such as labour market success of vocational and higher education graduates. In France, the Directorate of Evaluation, Forecasting and Performance Monitoring (DEPP) reports to the two ministries responsible for education. It manages education statistics and produces research to guide policy decisions and inform debate. It employs statisticians, data analysts, economists, and research analysts.
Source: Austrian Federal Ministry of Education (n.d.[66]), Ministry, https://www.bmbwf.gv.at/en/Ministry/Ministry.html; OECD (2020[67]), Strengthening the Governance of Skills Systems, http://dx.doi.org/10.1787/3a4bb6ea-en; French National Institute of Statistics and Economic Studies (2023[68]), Ministerial Statistical Office, https://www.insee.fr/en/information/2412738#:~:text=The%20DEPP%20is%20res ponsible%20for%20the%.
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