Artificial intelligence and labour markets: what we know so far

By European Training Foundation

Artificial intelligence and labour markets: what we know so far

The European Training Foundation (ETF) published an evidence-based analysis on April 16, 2026, examining how artificial intelligence is affecting jobs, skills, and labour markets across Europe and beyond, according to a press release by the ETF. Drawing on international evidence and recent empirical studies, the report challenges both alarmist and overly optimistic readings of AI’s role at work. The central finding is that AI is transforming jobs faster than it is eliminating them, with outcomes shaped heavily by policy choices and organizational practices.

AI is already present in workplaces across Europe and beyond, from recruitment software and automated scheduling to algorithmic systems coordinating tasks. The ETF report notes that between 40% and 60% of jobs are expected to undergo significant task changes due to AI, while only a small share can be fully automated. Around 79% of European firms in the economic sector already use at least one algorithmic management tool. Employment levels in many AI-exposed sectors have remained broadly stable so far, even as work content changes rapidly.

The report identifies job quality, not employment numbers, as the most immediate battleground. Highly educated and digitally skilled workers tend to benefit most, using AI as a productivity-enhancing tool, while others face work intensification, reduced discretion, and increased surveillance. Entry-level jobs are more exposed than senior roles, as many routine cognitive tasks traditionally assigned to junior staff are now automated, weakening career ladders. Around 60% of jobs in high-income countries are exposed to AI, compared to about 26% in low-income countries.

The ETF report also flags structural inequality risks embedded in AI adoption. Women remain overrepresented in clerical and administrative roles with higher exposure to automation and underrepresented in AI development and advanced digital occupations. The report points to persistent bias in AI systems used for recruitment, evaluation, and promotion, warning that without deliberate corrective action, the digital divide risks hardening into an AI divide. In lower-income countries, millions of workers are integrated into the AI value chain through low-paid micro-task work such as data annotation and content moderation, often under weak protections.

The ETF stresses that AI’s impact is not predetermined, and countries with strong labour protections, effective social dialogue, and forward-looking skills policies are better positioned to steer AI toward job upgrading. Even in high-income countries, only around 5% of jobs are estimated to face a high risk of full automation. The report calls for sustained investment in digital and AI literacy, targeted upskilling and reskilling, and social protection systems that can adapt to changing forms of work. The ETF states it will continue supporting partner countries in aligning education and training systems with evolving skills needs.