Labor market represents term that in the end best estimates the current state of the country's national economy, which includes also Republic of Croatia. Since the goal of each individual economy is actually the well-being of its citizens and the higher standard of living from certain aspects of the labor market we can read the problems that arise and cause the above mentioned. That is certainly incompatibility with the educational system and unfavorable dynamics of change with an emphasis on unemployment. The aim of this work is to explore the impact of the labor market in the planning politics of Croatian education. In that segment, we can notice the fact that the labor market on the one hand increasingly requires higher education, but in contrast, there is a significant excess of highly educated that the market can not absorb. That means the mismatch of supply and demand in the labor market and the mismatch between educational policy and labor market needs. In order to solve this problem, the republics of Croatia are carrying out education reform and on that way trys to reduce the inequality between supply and demand.