Kontinentalna Hrvatska attracts EU movers with higher education than the domestic workforce

The battle for talent within the EU is a story about both brain drain and gain. Of the 17 million people aged 15–64 migrating within the EU¹, around 4.5 million are highly skilled workers and students. Factors known for attracting these people from their home regions are economic growth, higher wages, robust social security, linguistic and cultural similarity, relatively easier access to the labour market and higher employment rates.²

In contrast, the brain drain phenomenon arises when a region can not compete and suffers a permanent loss of skilled workers or students.

Kontinentalna Hrvatska is a “sending” region, with more people moving out than in. In 2017 the net migration rate was -10.4 persons per 1,000 inhabitants.

A positive net migration means that more people are moving in, than out. A negative value means that the region is losing population. Net migration includes, in this case, both domestic and international movement.

Receiving regions are generally found in northern areas of the EU, e.g Sweden, Ireland, Estonia, Denmark and the UK.

The battle for the brains

The nature of the migration flows differs considerably across Europe. Some regions attract and gain highly educated workers, while others lose them. In this section we look closer at the education level of the newcomers, compared to the domestic population. Do the migrants⁴ affect the supply of skilled labour?

These are some of the key findings for Kontinentalna Hrvatska:

• Europeans that have moved to Kontinentalna Hrvatska generally have a higher education level than workers born in Croatia (27 percent of EU movers had higher education, compared to 22 percent in the workforce as a whole).
• This level makes Kontinentalna Hrvatska an unfavoured recipient of highly educated migrants compared to other European regions. ⁵
• In the past ten years the education level among EU migrants in Kontinentalna Hrvatska has risen considerably (+15 percent points).
• In the same time the education level among the whole workforce in Kontinentalna Hrvatska has also increased (+9 percent points).

Higher employment than domestic workforce

In general, highly educated workers in the EU that have moved to another EU country find employment at more or less the same level as the domestic workforce.

In Kontinentalna Hrvatska the employment rate for highly educated newcomers is higher than the rate for workers born in Croatia (90 percent compared to 84 percent among all educated workers in Kontinentalna Hrvatska).

What about the future? Reports on the modern knowledge economy say that high skilled immigration will continue to boost economic growth in the attractive regions. Income differentials combined with differences in living standards between regions will remain the primary driver of economic migration. The demand for skilled labour is robust. By 2025 nearly half of all new expected job openings in the EU is expected to target highly qualified workers⁶.