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Why ‘job hugging’ is on the rise as workers face a cooling job market
A mix of rising unemployment, slower hiring, AI anxiety, and industry layoffs is pushing employees to stay put — even in roles they don’t love.
Fear and uncertainty are both contributing to concerns regarding the current job market. Unemployment numbers are rising. The last reported US unemployment rate was 4.4%, from September, 2025. This is an increase from September 2024, when the unemployment rate was 4.1%. In Massachusetts, our most recently reported unemployment rate was 4.7%, compared to the summer of 2024, when it was 3.2%. An unemployment rate in the 4.4%-4.8% range is still a reasonably low unemployment rate. Over the past 20 years, unemployment rates have fluctuated, but the average is around 5-6%.
“Job hugging” is a recent trend that is one response to concerns about the uncertainty in landing a new job.
What is job hugging?
Job hugging is the concept of holding onto a job in response to uncertainty. A 2025 report, published by Monster.com, found that 75% of workers plan to remain in their current job for the next two years.
Why are workers choosing to ‘job hug’?
The Economy
Some job hunters feel that the role they know may be better and safer in 2026. Workers are staying in stable but less fulfilling jobs as opposed to exploring roles outside of their companies. Some job huggers may be dissatisfied and less motivated in their current roles. They also may be fearful of accepting a new role, in a new company with new responsibilities. There is an adage of “last hired, first fired,” which also can cause anxiety when considering a new job.
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The Bureau of Labor Statistics (BLS) reported a weaker job market in 2025. Employers added fewer jobs in 2025 compared to 2024. BLS also reported that the average job search takes over five months for an unemployed worker. Industry, geographic location, skill set and level can all impact the length of time to find a new job.
There is some evidence that tariffs also contributed to layoffs in industries. Reports from the construction industry state that hiring has been flat. Tariffs on lumber, primarily from Canada, has affected building costs. Technology firms have announced substantial cuts to their workforces. Giants like Amazon, Microsoft, and Meta have laid off employees in 2025. Retail is also another industry where job cuts have increased. Macy’s, Kohl’s, and Walmart all announced layoffs in 2025. Though there are concerns about holiday spending, retailers expect to hire thousands of seasonal hires in response to an expected increase in shoppers during the holiday season.
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There are some industries which are bright spots. Healthcare is one of them. Mass General Brigham continues to hire, in roles like phlebotomists, nurses, and food service workers.
The job hugging trend contrasts with the Great Resignation. The Great Resignation, which occurred from about 2021-2023, described a job market where employees resigned and were hired into new roles, outside of their current company.
Artificial Intelligence (AI)
Some workers believe that AI may negatively impact their job. Lawrence Schmidt, an associate professor at MIT, has studied AI and its impact on job losses. Schmidt found that AI can successfully complete many of a worker’s job responsibilities but not all. About 14% of roles within a company can be performed by AI, according to Schmidt’s research. However, AI is less effective in tasks where critical thinking may be required.
One role that is being affected by AI is the customer service role. Many of us have experienced chatbots when communicating online.
Some economists believe that AI can’t replace all roles but will augment many roles. Your physician may be one example. Many health care providers are using AI to better take notes during a patient visit.
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Job seekers sometimes equate job hugging to survival. Pay, benefits, and job security seem to be a more prevalent factor when a worker decides to remain in their current roles. With job hugging, workers may experience less upward career mobility or reduced compensation opportunities. Some employees are choosing to remain in their current roles, even though they may be unhappy in their role. Many would assume that if an employee is dissatisfied with their role, they would explore other employment opportunities. Job hugging is the antithesis of job hopping.
In 2020, “quiet quitting” was the trend being discussed in the world of labor and employment. Quite quitting is the concept of employees performing a role but just minimally meeting expectations. Though rare, some employees were working several different roles at once and collecting multiple salaries.
Job hunting will always be influenced by a number of factors, including the economy and AI. Job hugging is one outcome of a changing employment landscape.
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