More employees are trading job-hopping for ‘job hugging’

The rate at which employees are quitting their jobs has remained at 2% this year, the lowest stretch since 2016, outside the pandemic, according to US Labor Department data. It is what labor market analysts are calling “job hugging.”

Job hugging refers to workers clinging to their current roles. The persisting phenomenon is in contrast to the “great resignation” and job hopping prevalent in 2021 and 2022.

Why?
Workers are staying put in their jobs amid a cooling labor market and broader economic, political, and global uncertainty. AI disruption in several job sectors is also adding to the unpredictability.

Hiring has slowed to its weakest pace in over a decade, and employee confidence in finding another job has also plummeted.

According to a recent ZipRecruiter poll of US job seekers, 38% are “not confident at all” about more jobs in the market, up from about 26% in 2022.

Meanwhile, a Conference Board poll shows 34% of CEOs plan to shrink their workforce over the next year, versus 27% planning to expand.

Federal data shows the ratio of job openings to unemployed workers has also halved, from 2:1 in March 2022 to about 1:1 in June 2025.

While staying put can provide stability, experts warn that it comes with trade-offs. Workers who avoid moving may miss out on wage growth, skill development, and new opportunities. And a stagnant job market can make it harder for younger workers and recent graduates to get a foot in the door.