A new study from the European Central Bank released last week finds that fears about AI-driven job losses may be premature. On average, companies integrating AI are slightly more likely to hire more workers than cut with—with AI-intensive firms about 4% more likely to grow headcounts, and companies investing in the technology roughly 2% more likely to hire than firms that aren’t investing at all.
While the margins are small, the findings suggest that companies adopting AI aren’t shedding workers to make room for the technology. Instead, many appear to be using it to boost productivity while expanding their workforce.
“Investment in and the intensive use of AI are not yet replacing jobs,” the ECB economists wrote. “In fact, some firms are hiring additional employees—perhaps because they are looking to develop and implement AI technologies while maintaining their existing production processes, or because AI is a way to help them scale up more quickly.”
Part of the explanation may simply be that AI adoption is still relatively early. Among the European companies surveyed, only about two-thirds say their employees use AI at all, and fewer than one-third report investing in the technology.
But as AI use ramps up, workforce dynamics don’t appear to bring dramatic changes. Firms planning to invest in AI over the next year still plan to hire more workers—instead of shedding them.
American and British workers are giving up on their own job markets—and flocking to Europe
The uncertain job market in the U.S. is already pushing some workers to look abroad.
The U.S. experienced close to net zero or negative migration in 2025—the first time that’s happened in at least half a century, according to estimates from Brookings. Researchers expect the trend to continue into 2026.
For many Americans, Europe has become an increasingly popular destination.
In Portugal, the number of American residents has increased by more than 500% since the pandemic, according to the country’s Agency for Integration, Migration, and Asylum. In Spain and the Netherlands, the number of Americans has nearly doubled over the past decade, The Wall Street Journal reported. Moreover, more Americans moved to Germany and Ireland last year than vice versa.
Brits are making similar calculations. As the job market tightens in the United Kingdom, some young workers are increasingly looking beyond their home country for job opportunities.
One recent graduate with a mathematics degree said he spent more than a year applying to over 1,000 roles without landing a single offer—only to move to Austria with his partner, Anna, and land a role within weeks.
“The job market in the U.K. is so ridiculous,” Anna said in a TikTok video that received dozens of echoing sentiments. “Even for qualified people, it’s so hard to find a job.”
“I’m not saying the moving abroad is for everyone, but I do think it’s worth remembering that the world is bigger than just one job market,” she added.
Millionaires are flocking to European destinations—but AI’s impact on long-term employment remains unclear
The migration wave isn’t just limited to young professionals searching for work. Wealthy individuals are increasingly relocating as well, bringing capital that could help fuel job growth in their new home countries.
Several European countries are becoming hubs for that influx of wealth. Among the world’s fastest-growing millionaire destinations are Montenegro, Malta, and Poland—with the U.K., China, and India experiencing the greatest number of millionaire departures.
Still, when it comes to AI, the long-term picture remains uncertain—even in Europe. The European Central Bank researchers pointed to a 2025 study showing that 27% of German companies expect AI to lead to some job cuts over the next half decade.
“Overall…the effects of AI on employment are currently still positive. This is certainly the case as AI has not yet significantly transformed production processes,” the researchers said. “Given that this is set to change, the longer-term impact of AI on employment remains less clear.”
