Job hugging has emerged as the dominant workplace trend replacing job hopping, with employees holding onto their jobs for dear life amid growing economic uncertainty and a stagnant labor market. This dramatic shift marks a complete reversal from the Great Resignation era, where workers freely moved between companies seeking better opportunities.
The Numbers Behind the Job Hugging Phenomenon
The rate at which workers are voluntarily leaving their jobs — known as the quits rate — has hovered around 2% since the start of the year, according to U.S. Labor Department data. This represents a significant decline from the peak resignation rates witnessed during 2021-2022.
US job-growth figures slowed down substantially over the last quarter, to an anemic 73,000 jobs added in July, down from the 111,000 monthly average of earlier this year. The weakening job market has fundamentally changed how employees view career mobility.
Why Workers Are Embracing Job Hugging
Several key factors drive this workplace behavior:
The ratio of job openings per unemployed worker has fallen by about half since peaking at about 2:1 in March 2022; it was roughly 1:1 in June 2025. This dramatic shift has reduced workers’ bargaining power and available options.
A recent report shows the highest number of jobs lost in the same period since the global pandemic in 2020. Mass layoffs across tech, media, and other industries have created an atmosphere of job insecurity.
AI disruption, fewer openings, and an unpredictable economy have made workers wary of switching employers. The fear of technological displacement adds another layer of uncertainty to career decisions.
Generation Z Leads the Job Hugging Movement
Younger workers, particularly Gen Z employees, show the strongest tendency toward job hugging behavior. Having entered the workforce during periods of economic volatility, they prioritize job security over career advancement or salary increases.
Given just all the activity that happened post-COVID and then some of these constant layoffs, people are waiting and sitting in seats and hoping that they have more stability, according to Korn Ferry managing directors.
The Hidden Costs of Job Hugging
While job hugging provides short-term security, it carries significant long-term career implications:
- Reduced salary growth potential
- Limited skill development opportunities
- Decreased professional networking
- Potential career stagnation
- Lower job satisfaction over time
Korn Ferry’s latest Workforce Survey found that 67% of employees would stick with a company if offered opportunities for advancement and upskilling—even if they hated their job. This reveals the complex trade-offs workers make between security and satisfaction.
CEO Departures Tell a Different Story
Interestingly, CEO turnover rates have reached their highest in decades, with departures jumping 12% from June 2024 to June 2025, reaching the highest levels since the company began tracking turnover in 2002. This suggests that job hugging primarily affects middle and lower-level employees rather than executive leadership.
Future Implications of Job Hugging
Labor experts warn that job hugging may be building pressure for future workforce changes. Growing resentment means they could bail as soon as the next Great Resignation comes, creating potential volatility when economic conditions improve.
Companies must recognize that job hugging employees may not represent engaged, satisfied workers. Instead, they represent a workforce held in place by economic necessity rather than genuine commitment or enthusiasm.
The job hugging trend reflects broader economic anxieties and structural changes in the labor market. As workers navigate this uncertain landscape, both employees and employers must adapt their strategies to address the underlying causes driving this behavior.
What are your thoughts on the job hugging trend? Have you noticed similar patterns in your workplace or industry? Share your experiences and insights in the comments below to help others understand this evolving workplace phenomenon.