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The era of mass resignations has largely faded, giving way to a new employment trend dubbed “job hugging,” where workers are increasingly holding onto their current roles due to growing uncertainty in the labor market, according to CNBC.
Recent data from the U.S. Labor Department shows that the rate of workers voluntarily leaving their jobs has remained steady at around 2% in 2025 — a level not seen this consistently since 2016, apart from the early months of the pandemic.
Experts suggest this is indicative of workers’ growing caution, with many uncertain about their ability to secure better opportunities elsewhere.
Labor market activity is also notably sluggish across the board. Hiring, layoffs, and resignations have all slowed, with fewer businesses expanding their teams due to higher borrowing costs and economic pressures.
Job growth has decelerated, and the ratio of job openings to unemployed individuals has narrowed to a near 1:1 ratio — down from 2:1 in early 2022.
Adding to the cautious atmosphere, more business leaders now anticipate reducing staff than expanding headcounts over the next year, according to a recent Conference Board survey — the first time this trend has flipped since 2020.
Experts compare this hesitance to investors holding off in volatile markets, suggesting workers are waiting for better conditions before making a move. While staying in a job can offer stability, it may also come at a cost.
Workers who remain in one role too long may miss out on pay increases and career development typically associated with changing jobs. Employers may also begin to reassess employees who no longer demonstrate growth or initiative.
Moreover, this lack of mobility can make it harder for newcomers — such as recent graduates — to enter the workforce, creating further bottlenecks in hiring.
Though not inherently negative, this “job hugging” trend signals a workforce grappling with economic uncertainty, career stagnation risks, and limited prospects in a slowing job market.
