The Linux Foundation recently released the first 2026 State of Tech Talent Europe Report. The report claims that although the largest organizations are reporting a negative net hiring effect of -15%, a -3% for entry-level tech positions, and upskilling existing staff (63%) to fill talent gaps, AI is the primary driver of IT job creation. This finding stands in opposition to what many assume would be a "widespread workforce displacement."

"Despite uncertainty around AI-related job loss, AI is actually a net driver of job creation in IT," said the Linux Foundation. "European organizations anticipate a positive net hiring effect of +27% in 2026 and +17% in 2027. However, realizing the full value of AI is hindered by a severe full-stack readiness problem, with security and privacy concerns jumping to the top barrier for new technology adoption in 2026 at 51% and 44%, respectively."

The report also points to upskilling as a means to fill critical areas such as cybersecurity and AI operations. The Linux Foundation found that hiring from within the company points to the value of institutional knowledge, team cohesion, and cost efficiency.

At the same time, those organizations are also turning towards open source technology and communities to help "implement AI and build sovereign, secure capabilities."

"There can be no digital sovereignty without local tech talent," said Thierry Carrez, General Manager of Linux Foundation Europe. "AI is disrupting everything. Models continue to grow in their abilities, and their impact on the tech talent market needs to be properly assessed. The 2026 State of Tech Talent Europe report thoroughly explores that dimension. It delivers an analysis of that impact, with multiple reasons to hope for positive overall outcomes."