Amid US job market uncertainty, Gen Z employees are embracing this unexpected trend. What are its signs?

Millions of Americans are having a difficult time navigating the tough job market and some are ditching the trend of “job hopping” for “job hugging.” Job hugging is the act of holding onto a job “for dear life,” consultants at Korn Ferry, an organizational consulting firm, wrote last week.

The consultants have said that the employees are displaying what is colloquially known as “job hugging,” with the goal of simply holding onto their job. This comes as a sharp contrast to the “job hopping” trend that was popular in 2021 and 2022 when many employees sought better work opportunities as part of the “Great Resignation.”

Employees may be nervous to move to new opportunities in the current labor market and employers have also pulled back on hiring.

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Job hugging: The new workplace trend

In July, the Eagle Hill Consulting Employee Retention Index found that the employees most likely to stay in their current roles in the coming six months included Gen Z and men. This comes as the rate at which employees voluntarily leave their jobs or “quit rate,” continues to hover around 2 percent, according to the Department of Labor.

“Job hugging, the opposite of job hopping, could stem from fears about an unpredictable job market,” Peter Duris, CEO and co-founder of Kickresume, tells Stylist. “When there is a general lack of jobs, this can cause many people to cling to their current role, even if they’re growing bored with it.

In an interview with CNBC, Laura Ullrich, a director of economic research in North America at Indeed Hiring Lab said the “quit rate” is a barometer for measuring workers perceptions of the broader labor market. Low rates can indicate to economic experts that workers may be less confident about finding a new job.

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Forbes reported that mostly Gen Z workers are holding on to their jobs for dear life, not because they are thriving but they are not sure what lies next for them. Amid massive layoffs, skyrocketing prices and the tightening economy, workplace worry and anxiety are at all-time highs. With so much economic uncertainty, more workers are finding that job hugging and staying put is more secure than taking unpredictable leaps into new opportunities.

According to Matt Bohn, a senior client partner at Korn Ferry, unpredictable and unprecedented global events paired with AI disruption is making workers increasingly unsure about making any jump.

But while employees may feel like they’ve got a safety net, Bohn notes that this hesitancy could lead workers to fall into holding patterns that hold them back from developing their skills or careers.

Jennifer Schielke, CEO and cofounder of Summit Group Solutions, told the Forbes “job hugging” creates the illusion of loyalty, but it’s actually stagnation, and if leaders treat this low turnover as success, they miss the quiet disengagement that will trigger a talent drain when the market loosens up.

“The layoff trends that came on the heels of what was ‘anticipated’ to be a time of recovery from the 2020 Covid period perpetuated the lack of security in an already injured marketplace,” Schielke said. “Job reports, budget constraints and a continual undercurrent of fear entering into our workspace, clinging to what you have seems a logical play for stability and security. People have relocated, settled on remote abilities and experienced a time of economic strength. The flip of this is unsettling for most.”

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How to spot signs of job hugging at workplace:

Rising stress levels that influence both team behaviour and overall morale.

Shifts in performance, where individuals emphasize strengths to showcase their abilities rather than focusing on critical responsibilities that drive team success or key initiatives.

Employees stepping into additional roles or opportunities, which can be valuable if they’re still able to maintain excellence in their primary positions.

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Team members who have outgrown their current roles, remaining in positions that no longer align with their career path but holding on due to uncertainty in the job market.

Schielke notes leaders should take this moment to double down on development, mentorship and growth. “Employees may not be moving jobs, but they still need to move forward,” she says. “Great leaders will recognize that stability is not the same as engagement and use this time to build a stronger culture that lasts beyond the current market.”