As Europe grapples with persistent labour shortages across key sectors, new research underscores how both automation and migration have emerged as crucial, albeit complex, responses. The ongoing demographic decline, ageing populations, and mismatch between skills and labour market needs are pressing employers to seek alternative solutions to sustain production and growth.
According to the Vienna Institute for International Economic Studies (wiiw), automation is increasingly filling the gap left by workforce shortages, particularly in manufacturing. Companies across the continent, especially in Central and Eastern Europe, have invested in robotics and smart technologies to maintain output despite a shrinking labour force.
However, automation is only part of the story. Migration remains a vital counterbalance to domestic labour deficits. In their 2023 publication “Migration or Automation?”, wiiw researchers highlight that EU member states are simultaneously relying on both high-skilled and low-skilled migrant workers to meet short-term demands while investing in technologies for long-term resilience.
The situation in the Western Balkans presents a contrasting, though deeply connected, narrative. New findings published in late 2024 show that these countries are not yet facing severe labour shortages like their EU counterparts. Nevertheless, they are experiencing the effects of large-scale emigration, especially among the young and educated workforce, driven by better opportunities abroad.
The October 2024 wiiw study “Skills-oriented Migration in the Western Balkans” reveals that individuals are more likely to consider emigration if their skills are in high demand in destination countries, while domestic shortages actually reduce the intention to leave. This adds nuance to existing assumptions and suggests that effective regional cooperation on labour mobility policies is more urgent than ever.
Additionally, a December 2024 report warns that the continued outflow of talent from the Western Balkans could exacerbate structural gaps, undermining economic development. In response, policy recommendations include stronger investment in vocational training, tailored industrial strategies, and enhanced data collection for better labour market planning.
As Europe moves further into the fifth industrial revolution, where human creativity meets advanced technologies, the balance between automation and migration will remain a defining factor for its socio-economic stability. For countries on the periphery, like those in the Western Balkans, the challenge lies in transforming brain drain into brain circulation – and ensuring that the future of work is inclusive, sustainable, and smart.