The aim of this paper is to define the main concepts related to the labour market, interpret its indicators, and to conduct an analysis of indicators on the example of the Republic of Croatia. The paper presents the theoretical framework of the labour market, one of the most complex markets in the economy. By defining supply, demand, market balance, and market indicators, the main concepts related to the labour market are explained. The analysis of the labour market situation in the Republic of Croatia was carried out on the basis of the most important indicators. Total employment, employment by activity, and total unemployment and unemployment by counties were analyzed. Then an analysis of the level of average monthly salary and minimum monthly salary was carried out. After analysing the situation in the Republic of Croatia, data related to activity, employment, unemployment, and minimum wage are compared with EU standards. The results of the survey show that prominent labour market indicators in the Republic of Croatia are recording a positive movement over the observed period, but compared to European Union standards, the Croatian labour market lags behind the European market.