Artificial intelligence is not yet leading to a contraction of the IT labor market. On the contrary: organizations expect to need more technical staff in the coming years. At the same time, concerns are growing about security, skills gaps, and the declining influx of junior talent. This is evident from the Linux Foundation’s State of Tech Talent Europe 2026 report.
For the study, organizations were surveyed in February 2026 about AI, recruitment, and technical skills. The results show that AI in Europe is expected to lead to a net growth in IT employment of 27 percent in 2026 and 17 percent in 2027. Globally, those percentages are slightly higher at 34 and 25 percent, respectively.
This picture differs from the impression created by recent rounds of layoffs at major technology companies. According to the Linux Foundation, these layoffs are primarily concentrated at companies with more than 20,000 employees. Smaller organizations, on the other hand, expect to expand their technical teams.
High demand for AI specialists
The strongest growth is expected in roles directly related to AI. European organizations anticipate a net increase of 64 percent in this area, compared to 58 percent globally. At the same time, an imbalance is emerging in the labor market. While demand for experienced AI specialists is growing, the number of entry-level positions in Europe is declining. The study reports a net decrease of 3 percent for entry-level positions. Globally, however, growth is still evident.
According to the researchers, this could eventually lead to a shortage of professionals with mid-level and senior experience. The findings align with predictions from the World Economic Forum, which expects a net increase of 78 million jobs worldwide by 2030. According to organizations, it is not the technology itself, but security and privacy that pose the greatest barriers to further AI adoption. Security is cited by 51 percent of respondents as a hindrance to the implementation of new technology, followed by a lack of skills at 44 percent.
AI is now virtually everywhere. In Europe, 93 percent of organizations say they are implementing AI solutions; globally, that figure rises to 99 percent. However, many organizations still lack the foundation to deploy AI securely and at scale. A majority report shortages of expertise in AI security, risk management, cost optimization, and the operational management of AI systems.
Cybersecurity, in particular, appears to be a bottleneck. Nearly half of European organizations say they are understaffed in this area, significantly more than the global average. In addition, 61 percent indicate they are struggling with insufficient knowledge regarding AI security and risk management.
Open source and reskilling
According to the Linux Foundation, the issue also touches on digital sovereignty. European organizations want to become less dependent on foreign technology platforms, but this requires sufficient local technical talent.
Open source plays a key role in this. More than half of European organizations view open source as the most important strategy for implementing AI solutions while simultaneously building greater technological autonomy. Lower licensing costs, less vendor lock-in, and greater control over technology are cited as the main benefits. To address existing shortages, organizations are focusing primarily on developing their own employees. Upskilling and reskilling staff is cited by 63 percent of respondents as the most important approach.
According to the study, organizations are 3.7 times more likely to opt for retraining than for new hires in strategic technology domains. The Linux Foundation concludes that technical training is now considered more important for employee retention than financial rewards. At the same time, the researchers warn that organizations must not lose sight of the influx of young talent, as there is a risk of a shortage of experienced IT professionals in the long term.