In this paper are described various determinants that influence the supply and demand in the labor market. The labor supply depends on factors such as the size and age structure of the population, labor force, wage levels, the amount of income earned outside employment, etc. The demand for labor depends on whether the company sells its products in a competitive or noncompetitive product market, on the demand for the product or service in which the enterprise participates, the marginal productivity of labor, government measures and policies, etc. The labor supply consists of unemployed people who are willing to work. The paper finds that this number has been decreasing in Croatia in recent years, while increasing employment. However, it is necessary to take into account both the trend of emigration and the fact that fewer and fewer people live in Croatia. Demand for labor varies by year, and compared to last year it is lower. It is difficult to determine exactly the specific reasons that have the greatest impact on increasing or decreasing supply and demand, and only more or less reasoned assumptions can be made. The same is true with the real picture of unemployment and the exact number of unemployed people, given that there are different methodologies for monitoring this phenomenon and, consequently, for trends in the labor market.