ABSTRACT
This chapter examines the intersection of international labour migration and automation-driven labour market restructuring in the European Union (EU), with a focus on how migration systems can better support the Optimum Allocation of Skills of Migrants (OASM). It argues that current migration frameworks, both at EU and global levels, remain reactive and fragmented, failing to align migrant skills with rapidly evolving labour needs shaped by artificial intelligence and technological change. The analysis draws on a scoping systematic literature review of over 9,700 sources (quantitative and causal) conducted in Horizon Europe Link4Skills research project, narrowed through artificial intelligence-assisted screening and expert validation to 15 core studies, alongside insights from a 2025 World Café workshop involving 13 senior line managers from EU public employment services. Findings highlight a deepening divide in migrant labour outcomes: rising demand for high-skilled professionals in tech-intensive sectors contrasts with growing precarity among low-skilled migrants in automatable roles. Barriers include rigid credential recognition systems, siloed governance and limited access to upskilling. Using OASM, we propose policies centred on circular visas, modular credentials and data-driven planning. It views migration no longer as a one-way labour exchange, but upgrading skills and economies on both sides.
