In a time of labor market uncertainty, economic headwinds, and rapid advancements in AI, many employees are choosing to hold onto their current roles not because they are satisfied, but because switching seems too risky. This phenomenon, called job hugging, captures a shift in workplace behavior that carries significant implications for individuals, organizations, and the broader economy.

What Is Job Hugging?

According to a survey conducted by ResumeBuilder.com in August 2025, nearly half (45%) of full-time U.S. workers are engaging in job hugging. They are remaining in their current positions primarily out of fear of the unknown rather than loyalty or fulfillment.

What’s Driving This Trend?

Several interrelated factors lie at the root of job hugging:

• Labor market pessimism: A staggering 95% of job huggers cited concerns about the job market as a key reason for staying put. Nearly half characterized the market as “not very good” or “terrible.”
• AI anxiety: 77% worry that artificial intelligence will make securing a new job harder in the future.
• Economic instability: Weak hiring and economic uncertainty make stepping into the unknown feel less safe than clinging to the status quo.

When Stability Trumps Mobility

Job huggers are not just idly staying in place. They are actively trying to safeguard their positions:

• 60% are worried about being laid off.
• 84% of those concerned say they are working harder to stay in good standing. They are taking on more tasks, logging extra hours, strengthening ties with leadership, and even engaging in what some would call “sucking up.”

It is less about ambition and more about survival.

Even workers reluctant to leave are still keeping an eye on the market.

• Over half are occasionally browsing job listings. Others are actively applying or interviewing, but most do not expect to feel comfortable moving for another year or more.

• If conditions improve, 84% would consider moving for better pay, 60% for improved benefits, and 57% for growth opportunities.

Why This Matters for Employers

At first glance, low turnover rates might seem like a win for organizations. But job hugging can also be a red flag. Data from Korn Ferry has shown that quits rates have dropped to around 2%, the lowest level outside the pandemic era since 2016. That stability may mask disengagement, stagnation, or lack of mobility, especially among high performers who might stay only if their current role truly meets their needs.

HR leaders warn that survival-mode behavior erodes morale, productivity, and internal momentum. Without clear paths for advancement, employees may feel stuck, which could damage retention when the market eventually improves.

Risks of Job Hugging for Employees

• Stalled wage growth and progression. Historically, job switching delivered stronger pay boosts. This benefit has diminished, but lingering too long may still cost workers in the long run.
• Burnout and disengagement. Staying in unfulfilling roles out of fear may result in burnout or reduced performance.
• Reduced mobility for newcomers. When employees do not move on, fewer opportunities open up for new entrants, such as recent graduates.

Opportunities for Employers

• If workers are staying out of fear, companies can use this time to reengage them. Building trust, spotlighting career development, and strengthening internal mobility can turn fear into loyalty.

Looking Ahead

Job hugging is not a sign of loyalty. It is a barometer of anxiety. As AI reshapes industries and economic concerns linger, employers need to recognize this shift and build environments that offer momentum, clarity, and growth.

View the full report here.

Source: resumebuilder.com