The subject of this paper is the analysis of the impact of the Covid-19 virus pandemic on the global economy and the economy of the Republic of Croatia with a focus on the analysis of changes in the labor market in the Republic of Croatia. Covid-19, known as the coronavirus, has caused a public health crisis affecting citizens, societies and the economy. In the short term, the global coronavirus pandemic has not only affected the health system, but has also had a significant impact on the world economy. With the spread of the infection, it is certain that the corona virus will leave negative consequences, both on private lives and on the entire business world. The coronavirus pandemic is affecting all markets, including the labor market, which has been hit hard. The coronavirus restricted free movement in order to prevent the spread of the pandemic and thus led to problems in many aspects of the business. Governments are implementing various locking measures, individuals are reducing mobility, and companies ’production processes are disrupted. These shifts in the economy affected both the demand for labor and the willingness of workers to work. Labor market impacts, as well as overall economic impacts, vary considerably between countries, based on initial economic and labor market conditions and different policy responses. The aim of this paper is to explain in more detail the most significant changes that have occurred due to the Covid-19 virus pandemic in the global economy and the economy of the Republic of Croatia with a focus on the analysis of changes in the labor market in the Republic of Croatia. Based on professional literature, reports, the latest data collected from statistical databases: Eurostat, OECD, World Bank Group, IMF, it is made comparative analysis of the situation in the economy and labor market before the pandemic and during the Covid-19 pandemic and the consequences of the pandemic on the economy, that is, the labor market.