Job Hugging: Why Workers Are Clinging to Their Jobs in a Volatile Market

What is Job Hugging?

A new term, "job hugging," has emerged online, describing workers who cling to their jobs out of fear of reentering the dismal job market. This trend highlights a morbid reality where employees stay put not out of loyalty or fulfillment, but due to anxiety and complacency.

“Job hugging” is a new trend, describing workers who choose to stay at their jobs not out of loyalty or fulfillment at their companies, but rather out of fear or complacency brought on by a volatile job market (stock image)

The Harsh Reality of Job Searching

Job seekers face a tough landscape: companies post positions they never intend to fill, replace roles with AI, and combine multiple jobs into one, demanding uber candidates for minimal pay. One job seeker expressed, "Oh my goodness! I wouldn’t even say it’s competitive anymore right now. It’s just application after application being put out with either immediate rejection or ghosting all the way."

This situation is particularly challenging for recent graduates, who struggle to meet inflated requirements for senior roles and find few entry-level positions available as workers hesitate to leave.

Shift from the Great Resignation

Job hugging marks a reversal of the "great resignation" during the pandemic, when workers felt secure in leaving jobs for better opportunities. Now, fear dominates, with Mary Cavanaugh of Keystone Partners noting that fear and complacency drive this behavior, warning that staying too long out of fear can harm careers and organizations.

Economic Factors and Wage Trends

A key factor is the diminished incentive for job hopping. Recent data from the Atlanta Fed shows that wage increases for job huggers (4.6%) are only marginally lower than for job hoppers (4.8%), a stark contrast to two years prior when hoppers saw 7.7% increases versus 5.5% for huggers. This minimal gain makes the effort of job searching—applications, interviews, onboarding—seem hardly worthwhile.

Risks and Organizational Impact

While job hugging might feel safer, Cavanaugh cautions that it's riskier to be forced out by layoffs than to proactively move. Marie Unger, CEO of Emergencies International, points out that high retention driven by fear leads to disengaged employees, costing companies up to 18% of their annual salary. She emphasizes that true engagement comes from purpose and development opportunities.

Turning Stability into Strength

Unger suggests companies can benefit by elevating purpose and providing learning and development programs. Citing studies, 80% of employees feel that skill development boosts engagement, and 90% believe work should provide life purpose. By fostering meaning, organizations can transform job hugging into a positive force for both employees and businesses.