Higher education is an important social process and is a fundamental driver of economic progress. In order to create a society of knowledge, the educated and trained population is needed which aims to increase the productivity of the overall economic growth and development. Universities, polytechnics and colleges are established as institutions. In the Republic of Croatia the activity of higher education is conducted through colleges which can be private and public. Public colleges are established and financed by Republic of Croatia through the budget, that is to say, through the revenues which are realized on the basis of decisions taken by the founders in accordance with the regulations and are financed by funds which are collected through its activities, respectively, student fees. Universities, polytechnics and colleges are established as institutions. Components of the university are faculties, academies of arts and departments as well as other elements in accordance with law. University includes undergraduate university study, graduate studies and postgraduate studies, while polytechnics and colleges conduct specialist studies. Economic colleges are the highest economic institutions of science and education of the Croatian society. However, today's inconsistent development of public and private economic education leads to significant problems in the economy. Increasing unemployment is one of the important indicators of imbalance between supply and demand in the economically oriented market. The analysis of employability of graduate students of public and private economic institutions in Croatia should be a reflection of the real situation of higher education in the country. Considering the fact that each year the number of enrolled students is in growth at both private and public economic universities, students of specific qualifications are continuously facing difficulties in employment during the completion of the study. Therefore, higher education of economic orientation should be adapted to the needs of the labour market. Unbalanced discrepancy between public (state) and private sector in higher education leads to a collapse of the entire system of higher education. Such relationship between the private and the public economic college becomes more and more unequal due to the increasing stiff competition between them.