The paper is based on the research of the relationship between household lending and sectoral employment in the Republic of Croatia. The research aims to analyze how changes in household lending impact the employment structure across various sectors of the economy and how these factors shape economic stability in the country. The paper provides essential information about the Republic of Croatia, including gross domestic product, inflation, as well as employment and unemployment rates. Special attention is devoted to the analysis of monetary aggregates and the money supply to understand the financial environment in which household lending takes place. The primary focus of the paper is the distribution of loans to households and the examination of different types of loans. It analyzes how loans are distributed across economic sectors and how these loans affect the active population and employment. Additionally, it examines the rates of employment and unemployment and subsequently delves into an in-depth analysis of research results. The changes in the structure of bank loans to households, the movement of monetary aggregates and household loans, as well as the dynamics of the active population and employment across sectors, are investigated. Through the synthesis of the obtained results, it is concluded that household lending significantly influences sectoral employment in the Republic of Croatia. This graduate paper represents a comprehensive study contributing to a better understanding of the complex relationship between financial and economic aspects in the Republic of Croatia