Structural unemployment is a type of unemployment that arises from a mismatch between workers' skills and qualifications and the needs and demands of the labor market. Structural unemployment is inherently long-term and can be challenging because it requires long-term strategies and interventions to ensure that workers acquire the skills needed for available jobs. This thesis aims to provide a comprehensive analysis of structural unemployment in the Republic of Croatia, focusing on its causes and consequences. The reference period for the analysis of the total number of unemployed is a ten-year period, from 2014 to 2023. The paper provides a comprehensive insight into the issue of structural unemployment in the Republic of Croatia, relying on theoretical concepts, empirical analyses, and relevant statistical data to offer a deeper understanding of the dynamics of the Croatian labor market. Addressing the causes of structural unemployment requires an approach that includes various policies and measures to ensure a better match between labor supply and demand and reemployment. This includes improving access to education and training that meets labor market needs. Additionally, it is necessary to encourage investments in research and development to stimulate innovation and the creation of new jobs. Encouraging entrepreneurship can stimulate job creation and the development of new industries. Facilitating geographical mobility of the workforce provides workers with the opportunity to move to places where jobs are available. Providing social protection and support to long-term unemployed workers can ease their transition to new employment opportunities.