The American workforce is experiencing a dramatic reversal. Where once employees confidently jumped between positions for better pay and opportunities, workers now cling desperately to their current roles—not out of satisfaction, but from fear of what lies beyond.
This shift represents the rise of "job hugging," a defensive employment strategy where workers remain in positions they may dislike simply because the alternatives appear worse. This phenomenon marks a stark departure from the post-pandemic era of bold career moves and salary negotiations.
The Fear-Driven Workforce
Matt Bohn from Korn Ferry describes the transformation succinctly: workers who once chased substantial pay increases now prioritize stability above all else, even when deeply dissatisfied with their roles. This cautious approach, while understandable, creates ripple effects throughout the economy as wage growth stagnates and workplace innovation suffers.
Recent data paints a concerning picture. Nearly half of American workers—46 percent according to ResumeBuilder—now qualify as "job huggers," with 95 percent of this group citing fears about the broader job market as their primary motivation for staying put.
The Eagle Hill consultancy's findings reinforce this trend. Their Employee Retention Index shows most workers planning to remain in current positions for at least six months, while their Job Opportunity Indicator has plummeted to unprecedented lows since tracking began in 2023. The message is clear: workers are "holding on for dear life" in what they perceive as a hostile employment landscape.
The Great Resignation's Reversal
This represents a complete about-face from the 2021-2022 period that Anthony Klotz famously dubbed the "Great Resignation." During that era, pandemic-induced reflection led millions of workers to abandon unsatisfying jobs in pursuit of better conditions and compensation.
Today's reality is starkly different. Quit rates have fallen to pandemic-era lows, while layoffs surge across industries. For the first time since April 2021, job openings have dropped below the number of unemployed Americans—a sobering indicator of market conditions.
Jennifer Schielke of Summit Group Solutions attributes this shift to multiple converging factors: remote work disruptions, artificial intelligence acceleration, and broader national uncertainties have combined to create an employer-dominated market where workers feel they have little leverage.
The Psychology of Workplace Captivity
The mental toll of job-hugging extends beyond simple job dissatisfaction. Clinical psychologist Dr. Chloe Carmichael distinguishes between healthy career stability and fear-driven job retention, noting that the latter keeps workers trapped in potentially toxic environments.
This psychological dynamic creates what researchers term "reluctant stayers"—employees who remain physically present but emotionally detached from their work. Gallup's engagement surveys confirm this troubling trend, showing declining workplace enthusiasm since pre-pandemic peaks.
Anthony Klotz explains the cycle: when alternative opportunities were abundant, disengaged workers could easily transition to more fulfilling roles. In today's constrained market, these same workers become prisoners of their own pessimism.
The Hidden Costs of Clinging On
Job hugging's consequences extend far beyond individual dissatisfaction. For workers, the strategy risks long-term career stagnation. Kevin Fitzgerald from Employment Hero warns that avoiding new challenges and skill development severely limits future prospects, particularly damaging for younger professionals who need diverse experiences to build resilience.
The involuntary nature of this retention strategy compounds the problem. When driven by fear rather than choice, job-hugging can normalize workplace dysfunction. Sociologist Yasemin Besen-Cassino notes that fearful employees may tolerate harassment, pay inequity, and poor conditions rather than risk unemployment.
Jennifer Schielke describes the emotional burden: market anxieties and financial pressures can trigger a downward spiral of poor performance and disconnected engagement, ultimately making workers less competitive for future opportunities.
Business Implications
While employers might initially welcome reduced turnover, job hugging presents significant organizational challenges. Fitzgerald warns that captive employees who feel stuck rather than energized become toxic for business culture, especially in smaller organizations where individual contributions carry greater weight.
Companies may find themselves managing workforces of reluctant participants rather than engaged contributors, potentially stifling innovation and productivity gains that come from motivated employees.
A New Employment Era
If the Great Resignation represented American workers' declaration of independence, 2025's employment landscape suggests a sobering recognition of market realities. The confident job-hopping culture that defined the post-COVID recovery has given way to a more cautious, fear-driven approach to career management.
This transformation reflects broader economic anxieties about artificial intelligence displacement, persistent inflation pressures, and uncertain economic conditions. Workers who once felt empowered to demand better treatment now focus primarily on survival in an increasingly competitive landscape.
The shift from job hopping to job hugging represents more than a labor market adjustment—it signals a fundamental change in how American workers view their relationship with employment in an era of heightened economic uncertainty.
Shoppers increased their spending at a better-than-expected pace in August from July, helped by back-to-school shopping, even as President Donald Trump’s tariffs start to hurt the job market and lead to price increases.
Retail sales rose 0.6% last month from July, when sales were up a revised 0.6%, according to the Commerce Department’s report. In June, retail sales rose 0.9%, the government agency said.
The August performance, announced Tuesday, was also likely helped by the continued efforts by Americans to keep pushing up purchases ahead of expected price increases.
The sales increases followed two straight months of spending declines in April and May.
Excluding auto sales, which have been volatile since Trump imposed tariffs on many foreign-made cars, retail sales rose 0.7% in August. Sales at auto vehicle and parts dealers rose 0.5%.
The data showed solid spending across various other outlets. Business at electronics and appliance stores was up 0.3%, while online retailers saw a 2% increase. Business at clothing and accessories retailers rose 1%.
And business at restaurants, the lone services component within the Census Bureau report and a barometer of discretionary spending, rose 0.7%. Business at furniture and home furnishings stores was down 0.3%.
“This is further evidence that we shouldn’t underestimate the strength of the consumer,” Bankrate senior industry analyst Ted Rossman wrote in a note Tuesday. “Back-to-school shopping was a key theme in August, as evidenced by the strong clothing and electronics sales.”
Government retail data isn’t adjusted for inflation, which rose 0.4% from July to August, according to the latest government report. That was faster than the 0.2% pace of the previous month. So that could have inflated the sales figures as well.
Consumer prices increased 2.9% in August from a year earlier, the Labor Department said last week, up from 2.7% the previous month and the biggest jump since January. Excluding the volatile food and energy categories, core prices rose 3.1%, the same as in July. Both figures are above the Federal Reserve’s 2% target.
Stronger-than-expected retail sales, coupled with higher inflation as well as data showing soaring applications for unemployment aid, all create a complicated picture of the economy. Such data put the Federal Reserve in an increasingly tough spot as it prepares to cut rates at its meeting this week, economists said.
Earlier this month, the Labor Department reported that U.S. employers — companies, government agencies, and nonprofits — added 22,000 jobs last month, down from 79,000 in July and well below the 80,000 that economists had expected.
Carl B. Weinberg, chief economist at High Frequency Economics, noted the retail sales increase “will not be enough of a surprise to stop the Fed from cutting rates this week, but it should support a hawkish message from the Fed Chair that a knock-on rate cut is not assured.”
Major retailers, including Walmart, Macy’s, and Best Buy recently reported their quarterly results, underscoring that shoppers are still buying, but are choosy. Some have raised prices, but many have described the hikes as modest.
Still, so far, shoppers haven’t felt the big sting as some economists predicted earlier in the year, as many retailers ordered goods ahead of tariffs and absorbed a big chunk of the costs as they came in, worried about passing on any hefty price increases.
The price gains have also been gradual enough to mute changes in consumer behavior, Walmart CEO Doug McMillon told analysts last month.
But Walmart and others said they expect to see costs increase as they replenish inventory at post-tariff levels.
Jewelry maker Pandora hasn’t announced specific price increases, but Pandora CEO Alexander Lacik said in a call with analysts last month that the company is monitoring the scenario.
He noted that “the U.S. consumer will eventually have to bear the brunt of these tariffs,” but added, “it’s not just on jewelry, it’s on many product categories. So the big question mark is, what happens with inflation in the U.S., unemployment rates, all sorts of other macro drivers, and I think this is ahead of us.”
Matt Priest, president and CEO of trade group Footwear Distributors and Retailers of America, told reporters Monday that members are starting to pass along price increases to shoppers. Its members had previously paid a total of $3 billion in tariffs annually for years; that number is now on track to hit $5 billion by year-end. He warned that women’s shoes would be affected first.
“Women’s shoes are more fashion-oriented,” Priest said. “Our ability to front-load women’s products based on fashion trends was limited, and so we are seeing that those increases start to hit consumers first.”
Half of U.S. youth say that loneliness has a daily disruptive impact on their mental health, according to Hopelab and Data For Progress survey results shared exclusively with Axios.
The polls show two different paths, with over half of respondents reporting good mental health, though that state of well-being strongly correlates with income and LGBTQ+ identity.
- The survey's results "challenge an oversimplified crisis narrative around youth mental health, showing that two things are true at once," Emma Bruehlman-Senecal, Hopelab principal researcher, told Axios.
- "One, not all young people are struggling today with mental health issues... And at the same time, there are pronounced disparities in mental health, and in particular, LGBTQ+ young people and young people who are struggling financially."
- Family problems, no clear path, school work, and friendship issues were the other top issues that those surveyed said were impacting their mental health.
55% of young people say their mental health is good, very good or excellent, according to the survey.
- But LGBTQ+ youth rate their mental health as poor at nearly triple the rate of non-LGBTQ+ youth.
- And those young people who struggle to meet basic expenses report poor mental health at more than triple the rate of those who live comfortably.
- Respondents said solo downtime, face-to-face time with friends, and engaging with media are the top activities that support their well-being and mental health.
About a quarter of youth say their schools fall short on mental health support.
- More resources, training, and support should be poured into schools, which serve as "an equalizer," Amy Green, Hopelab's head of research, told Axios.
- "That's why it becomes an even more important place for resources and support for young people because it has a more universal impact," she said.
Members of Gen Z are optimistic about their own futures while expressing more concern for the future of the U.S. and the planet.
- That resonates for Maddie Freeman, 24, who said it can be hard to grapple with a "backdrop of doom." For Freeman, who runs a digital wellness nonprofit, this helps motivate activism and change-making.
"While these topline findings indicate that most young people report good mental health and emotional well-being, they reiterate the importance of intersectionality in mental health research and interventions," the report said.