Youth unemployment and the mismatch of the education system with the needs of the labor market is a major problem in the Republic of Croatia. Unemployment is one of the most significant and common problems that every country faces, and the unemployment of young people, who are a significant human capital of our economy and society, is of particular concern. The education system is a very important factor in youth employment in Croatia. The general situation in the Croatian education system has been recognized as a fundamental cause of youth unemployment in Croatia, regardless of the level of education. Youth unemployment is one of the biggest problems of today, affecting not only the individual but the entire community. The mismatch between education policy and labor market needs is a structural problem that cannot be solved "overnight", and previous analyzes of the Croatian labor market show large mismatches between existing needs and the supply of adequate labor. The mismatch between the needs of the labor market and the education system has been a problem for a long time, which HUP constantly warns about. In the case of youth unemployment, we must mention that there are measures to encourage employment, such as self-employment measures, measures of internships in the public and private sectors and other measures. The Republic of Croatia, in cooperation with the Croatian Employment Service and the education system, is trying to solve the problem of youth unemployment. Due to the mentioned problem of non-compliance, we can notice that young people often find jobs outside the borders of the Republic of Croatia, and so we have a problem with the emigration of young people.