"Future potential flows of Croatian workers to other EU Member States are likely to be small, at least in percentage of the labour force of the EU and in most destination countries," the Commission said in the report.
The first two-year phase of the transitional period ends on 30 June, and the entire transitional period can continue for seven years during which other member states can introduce limits on Croatian workers to access to their labour markets.
Thirteen EU member states applied restrictions on employment of Croatians in the first two years: Austria, Belgium, Cyprus, France, Germany, Greece, Italy, Luxembourg, Malta, The Netherlands, Spain, Slovenia and Great Britain.
These countries required Croatian citizens to obtain a working visa. Croatians can seek employment in the remaining 14 EU countries without any restrictions.
During the second phase which lasts three years, member states can limit the intake of Croatian workers but are obliged to advise the Commission of their decision.
During the third phase which lasts an additional two years, member states that have opted for the restrictions in the second phase can extend the ban if they consider that it will significantly impact their labour markets.
After 30 June 2020 all restrictions are removed indefinitely.
The influx of Croatian workers after Croatia joined the EU on 1 July 2013 was moderate toward traditional destinations while the number that emigrated to those countries where bans were not imposed was very small in absolute numbers, the EC said.
Even though Germany and Austria had introduced restrictions, they still remained the most attractive destinations for Croatian workers.
Of the total number of economically active Croatians that left their homeland, 68% went to Germany and 17% to Austria, according to figures referring to 2013.
The number of Croatians in Germany between 2014 and 2015 has increased by 22,800 people, which is a growth of 10%, and around 2,000 Croatians found employment in Austria which is an increase of 10% too.
The EC notes that Croatia has shown an outflow of young, highly educated people but that this was a moderate process.
"According to the EU-Labour Force Survey, in 2014 around 229,000 economically active Croatian citizens were residing in the EU-27 countries, where they represented around 0.1% of the total labour force. This share was higher, though still relatively low, in Austria (1.0%), Germany (0.4%) and Slovenia (0.2%). In all other countries, it was below 0.05% or too small to be reliably determined," reads the report.