US Workers Increase Job Hugging Amid Economic, AI Uncertainty

A significant trend known as "job hugging" has emerged among American workers, especially Generation Z, where employees are deliberately staying in their current jobs due to economic uncertainty, fears of layoffs, and the perceived risks of moving in a cooling labor market. Surveys from the Federal Reserve Bank of New York and Resume Builder reveal that confidence in finding new employment is at historic lows, with many workers citing concerns about inflation, tariffs, and the impact of AI on job security as primary reasons for holding onto their positions. This phenomenon marks a departure from previous patterns of early-career mobility, with young professionals prioritizing stability over career advancement despite dissatisfaction and burnout risks. Economic pressures like rising living costs, stagnant wages, and student debt further constrain the ability of young workers to transition between jobs. While companies may benefit from reduced turnover costs in the short term, prolonged job hugging could mask underlying workforce disengagement and limit long-term productivity and growth. Experts note that as economic conditions improve, many job huggers are open to moving for better pay and benefits, but confidence in making these transitions remains low amid ongoing uncertainties.