This paper aims to discover the possible causes for exclusion of a significant part of the population from the labour market in Croatia. It focuses on the NEET population (not in employment, education, training, disability and retirement) of working age (20-64). The paper considers that the concept of the NEET population, which is usually focused on youth, could be a useful tool for analysing employment flows and work-disincentive elements of social benefits for the adult population. The present study provides such an analysis for Croatia, a country marked by particularly low participation and employment rates. The paper provides an estimate of the size of the NEET population, its profile, and changes during the crisis. Key information is taken from Household Budget Survey (HBS) micro data for 2008 and 2011. It is found that the share of the NEETs among the working-age population increased from 15 to 21 percent in the observed period, mainly because of the increase of unemployment. Around 60 percent of NEETs are women. Compared to the employed, NEETs are slightly younger, less educated, and more often live in rural area. Probit regression model is applied for estimation of the job prospects of the NEET population. The results show that single, prime-age male NEETs with good social relations, proxied by the number of working adults in the household, have the best chances for finding a job. Probability of employment for NEETs decreases with household income. No significant impact on employment probability is found for beneficiaries of social assistance programs.