This thesis is focused on the analysis of the labour market in Croatia with a special focus on young people and programs aimed at them. By comparing the main indicators of the labour market with those of the European Union member states, a deeper insight into the state of the labour market in Croatia is given, especially into the challenges faced by young people. Special attention is also paid to active labour market policies created for young people, primarily those resulting from the European Union's Youth Guarantee program. The thesis indicates that even in stable labour market conditions, young people are in a less favourable position than other age groups in the labour market and face various challenges. Some of the challenges that young people face include a relatively higher unemployment rate, more frequent employment in precarious forms of employment, and the mismatch of the education system with the needs of the labour market. These challenges are particularly pronounced among the most vulnerable groups of young people, such as young people with NEET status. For young people to more easily become independent in Croatian society, it is of crucial importance to create more stable and high-quality jobs and to improve the education system, which, among other things, includes a better connection of educational programs with the needs and demands of the (future) labour market.