The job market has officially worn people down. After enduring a year of sluggish hiring and an increasingly frustrating application process, many workers are throwing in the towel on their job search altogether.
The numbers tell a stark story: Only 43% of workers plan to look for a new job in 2026, a dramatic drop from 93% last year, according to a December survey of 1,504 U.S. workers by Monster.
From Great Resignation to Great Hesitation
The contrast with last year couldn't be sharper. In 2025, job-switching intentions "signaled significant optimism" and matched levels seen during the Great Resignation, explains Vicki Salemi, careers expert at Monster. Workers were eager to find better-paying roles to combat rising living costs.
Fast forward to today, and while financial pressures haven't eased, optimism has evaporated. Workers still need more money, but they don't believe they can actually land a new job—let alone one that pays better.
The economic backdrop supports their pessimism. One economist characterized the current situation as a "hiring recession," with 2025 marking the worst year for total job gains outside of an actual recession since 2003, CNBC reported.
Job Hugging Takes Hold
This widespread discouragement is fueling a phenomenon called "job hugging"—workers clinging to their current positions out of fear of facing a brutal job market.
The Monster survey reveals just how entrenched this mindset has become:
- 52% expect nationwide layoffs to increase in 2026
- 40% believe the job market will worsen this year
- Another 40% don't think it will improve at all
- 75% of employees plan to stay in their current jobs until 2027
The Side Hustle Surge
Unable to find better opportunities in the traditional job market, workers are getting creative about boosting their income. Nearly two-thirds are turning to alternative income streams, with 32% already running a side hustle and 30% planning to start one in 2026.
This makes sense when you consider that roughly half of workers say their pay hasn't kept up with inflation.
According to Salemi, workers are "prioritizing job stability and income protection in their day jobs, so they're quietly picking up side hustles. They're pursuing new skills through upskilling. They're more selective about job searching."
There's a silver lining here: The side hustle boom could actually open doors down the road. As workers explore different industries, build new contacts, and develop skills outside their day jobs, they may discover opportunities to turn passion projects into full-time roles—especially if market conditions improve.
Making the Most of Where You Are
Even if switching jobs feels out of reach right now, Salemi encourages workers to maximize their current situation by:
- Volunteering for different projects and stretch assignments
- Taking advantage of learning and development resources
- Networking within your company and industry
- Having candid conversations with your manager about what it takes to earn a raise or promotion
For the Determined Job Seekers
If you're among the roughly 40% still committed to finding a new job this year, strategic thinking is essential. With fewer people actively searching, you can use the reduced competition to your advantage.
Salemi recommends:
- Tailoring your resume to each specific job description
- Including strong, relevant keywords
- Highlighting transferable skills that apply across roles
- Focusing your search on industries with actual openings, like healthcare
Playing the Long Game
Despite the grim outlook, this moment isn't about workers giving up on their careers. As Salemi puts it, "They're basically playing the long game in terms of preservation and planning."
Workers are being realistic about the market while positioning themselves for future opportunities. They're building skills, exploring side income, and staying ready for when conditions improve.
It's not disengagement—it's strategic patience in an uncertain time.