The article aims to investigate the essence and features of cross-border circular migration of rural population in order to substantiate the changes and directions of the policy concerning cross-border labor markets as well as defining its role and ability to reduce the risks of permanent emigration. The study was based on the publications of Ukrainian and foreign scientists concerning the theories of regional economy and the policy of the development of cross-border regions, cross-border cooperation and circular migration of rural population. The influence of a variety of factors upon the development of cross-border circular migration have been analyzed. Features of current cross-border policies and circular migration in Ukraine were described and challenges in order to aid the rural population in their economic activities were defined. Changes in the policy concerning cross-border cooperation in Ukraine are needed in order to gain maximum benefits from cross-border circular migration.