The final paper will study the labor market model of the Republic of Croatia and will compare it with the labor market model of the European Union, ie with its member states in order to identify all the advantages and disadvantages within the labor market through comparative analysis. It will also explain the basic concepts of the labor market, as well as the forces of market supply and market demand that act in the labor market itself as the leading forces for explaining market phenomena. The analysis of employment and unemployment will try to explain certain phenomena within the labor market of the Republic of Croatia that are related to the past of the Republic of Croatia in terms of the impact of war on population structure, changes in births and deaths, but also the development of small and medium enterprises. By studying the problems of the labor market of the Republic of Croatia, but also the European Union, the leading problems that occur in the labor market will be highlighted in order to try to explain through correlated phenomena that often occur in each labor market of each EU member state. Also, presenting the advantages and disadvantages of the labor market will try to create an objective impression of the quality of the labor market at the level of the Republic of Croatia, but also at the European Union level so that they can be compared for mutual improvement and mutual optimal use of their existing capacities.