The so-called great resignation that saw millions of workers leave their jobs has shifted into what experts are now calling the “great stay.” According to recent reports, many employees in the US are holding onto their current roles more tightly than before, a trend described as “job hugging” by organisational consultants. This phenomenon reflects a significant change in the labour market, with fewer workers voluntarily quitting and an overall slowdown in job movement.Data from the US Department of Labor’s Job Openings and Labor Turnover Survey (JOLTS) reveals that the quits rate has stabilised at around 2% since the start of the year. This level is one of the lowest recorded since early 2016, aside from the initial disruption caused by the Covid-19 pandemic. Experts say this points to a more cautious workforce amid ongoing economic uncertainties.What is job hugging and why is it happeningJob hugging refers to workers holding on to their jobs “for dear life,” as described by consultants at Korn Ferry in a recent report, according to CNBC. The shift away from job-hopping, which was prevalent during 2021 and 2022, is influenced by several factors. Laura Ullrich, director of economic research in North America at the Indeed Hiring Lab, told CNBC that the quits rate acts as a barometer of workers’ confidence in the broader labour market. She noted that many workers may be nervous about their prospects or hesitant to leave current roles due to perceived limited opportunities elsewhere.A quarterly poll by ZipRecruiter highlighted that the share of jobseekers who are “not confident at all” about the availability of “plenty of jobs” has risen to 38% in the second quarter, up from about 26% three years earlier. Matt Bohn, an executive search consultant at Korn Ferry, told CNBC that uncertainty in the economic, political, and global environment is causing workers to remain cautious, comparing the situation to investors waiting on the sidelines for better opportunities.Labour market slowdown and its impactThe US labour market has shown signs of cooling, partly due to higher interest rates that increase borrowing costs for businesses. Hiring rates have dropped to their lowest in more than a decade, excluding the early months of the pandemic, resulting in fewer job openings. The ratio of job openings to unemployed workers has decreased from about 2:1 in March 2022 to roughly 1:1 in June 2025, according to federal data cited by CNBC.Furthermore, a Conference Board quarterly poll reported that more CEOs intend to reduce their workforce over the next 12 months (34%) than to expand it (27%), marking a reversal from previous trends. This slowdown has contributed to stagnant movement in the labour market, as Ullrich told CNBC: “There’s just not a lot of movement at all.”Risks and consequences of job huggingWhile job hugging provides job security, experts warn of potential drawbacks. Ullrich explained to CNBC that workers who stay put may miss out on wage increases typically earned through job switching. Matt Bohn added that prolonged tenure in one role could lead to stagnation, with fewer opportunities to take on new responsibilities or develop skills, potentially affecting future marketability and career progression.Moreover, this reduced movement can limit opportunities for new entrants to the labour market, such as recent graduates, by restricting job availability. As Ullrich told CNBC, the lack of labour market fluidity may pose challenges for both workers and employers moving forward.The trend from job-hopping to job hugging illustrates how economic and labour market uncertainties continue to shape employment behaviours across the US, reflecting a cautious workforce adapting to evolving conditions.TOI Education is on WhatsApp now. Follow us here.
