‘Job hugging’ rises as workers cling to roles amid market uncertainty, experts warn

A new workplace pattern identified by HR specialists and psychologists — dubbed "job hugging" — is emerging as employees keep unfulfilling roles because the perceived risks of leaving appear greater than the potential benefits. Experts warn the behaviour, fuelled by economic anxiety and broader labour-market uncertainty, could harm productivity, innovation and worker wellbeing.

Australian Bureau of Statistics figures show job mobility has fallen for two consecutive years, with 7.7 percent of employed people changing employer or business in the 12 months to February 2025, down from a peak of 9.6 percent in February 2023. That equates to roughly 1.1 million people shifting jobs in the most recent year, according to the ABS.

Rebecca Houghton, founder of BoldHR and a middle management specialist, described the trend as "risk aversion, pure and simple — driven by economic anxiety and a global hangover from pandemics, restructures, fears that AI will take over, and everything in between." She said recent BoldHR research found one in three managers surveyed reported feeling burned out.

"Workers aren't 'hugging' their jobs because they love them. They're 'hugging' them because, frankly, the alternative looks worse," Houghton said, urging leaders to prepare for a potential rapid exodus once market conditions improve. "The minute the market picks up, they'll be the first out the door. Quietly. Quickly. Smart leaders won't wait for the exodus. They'll act now, by building workplaces people choose to stay in, not ones they simply haven't escaped from yet."

Rich Lewis-Jones, vice president for APAC at talent-acquisition software provider SmartRecruiters, said the behaviour signals a major shift in hiring dynamics. "Economic instability, AI-driven job uncertainty, and sluggish job growth have made stability the priority over new opportunities, especially among Gen Z and younger professionals," he said, adding that disengaged employees who remain in place risk eroding productivity and slowing innovation.

From a recruiting standpoint, Lewis-Jones said employers will need to place greater emphasis on demonstrating stability, learning opportunities and long-term potential to both attract and retain talent.

Clinical psychologist Dr. Kaitlin Harkess cautioned that job hugging can take a psychological toll on workers who remain in misaligned roles out of fear. She said short-term stability can feel like relief, but over time "misaligned jobs and workplaces can erode confidence and motivation. From disengagement to burnout, our health suffers."

Harkess distinguished between strategic decisions to remain in a job for personal reasons — such as prioritising family, financial planning or outside pursuits — and what she described as "unhealthy" job hugging, in which individuals stay because they cannot tolerate uncertainty. She said the latter may produce symptoms such as chronic boredom, the "Sunday scaries," irritability, fatigue, poor sleep, headaches and social withdrawal at work.

"If you catch yourself saying, 'I'd leave if I could, but I can't,' you may have slipped into learned helplessness," Harkess said. "That's your red flag that job hugging has become job trapping."

Observers note the trend differs from recent workplace phenomena such as quiet quitting or "acting your wage," which were framed as worker pushback against excessive demands. Job hugging, by contrast, is characterised as a retreat: employees opting for the perceived safety of a known role rather than pursuing career advancement amid uncertain labour-market signals.

Employers that do not address the drivers of the trend may face longer-term costs. Houghton warned that a workforce that stays put while disengaged can produce flatlined talent development and fewer internal promotions, making organisations less adaptable. Lewis-Jones said proactive recruitment and retention strategies that emphasise career progression, stability and skills growth will be key assets in a market where many workers value predictability.

As labour markets fluctuate, experts said employers and managers should watch for signs of disengagement and invest in work environments that make remaining a choice rather than a default. Interventions suggested by HR leaders include clearer career pathways, training and reskilling opportunities, mental-health supports, and management practices that address burnout and rebuild trust.

Analysts say the current pattern could reverse if hiring picks up, which could leave employers vulnerable to a rapid uptick in turnover unless they take steps now to address engagement and retention. In the meantime, both organisational leaders and occupational-health specialists are urging attention to the causes and consequences of job hugging to avoid longer-term declines in workforce capability and worker wellbeing.