In the last two decades we have been witnessing the decrease of population in many countries of the Danube Region. All demographic indicators are unfavourable. Current demographic situation and labour market in the countries of the Danube Region is presented. The purpose of this paper is to evaluate the effects of demographic decline in the countries of the Danube Region on the key labour market variables and to model their behaviour. Also, the purpose of this paper is to analyse and discuss the possible consequences of demographic decline and the roles of migration and brain drain in the region. The main conclusion is that drop in the population growth is compensated with migration flows and prolongation of working life when it comes to the active labour force in the Danube Region, although population is still a main source of working force.