The aim of this research is to analyze the impact of higher education on labor competitiveness in Croatia. We live in the time of fast and unpredictable changes in the labor market, the growing need for a highly educated staff is growing. There is an increasing number of young people enrolling faculties without a clear vision of this profession in the future. The quotas on faculties are not prescribed and there is not enough information available in the faculty selection, which leads to problems of non-compliance with the labor market system in Croatia. Numerous professions, such as economists, come to a situation where they can not find jobs in the profession and end up in jobs that are unsatisfactory to their education and qualifications, there is a problem of overeducation. For the purpose of the research is created a survey of highly educated people was conducted to determine the real situation of the highly educated labor market. The research has led to the results that many people have a job position with regard to qualification, except for the job vacancy. Dissatisfaction stems from the fact that most respondents do not work in the workplace in accordance with education. Most of the respondents have never been instructed on permanent education by an employer, which becomes all the more necessary to keep pace with the rest of the world. They do not trust Croatian employers, in a higher proportion, they believe they do not comply with the law related to the level of education required for the job. The level of education is important for a better position in the labor market, but a number of reforms are needed in order for highly educated people to work in positions of education and be satisfied.