Fed report finds employees less confident about job prospects
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After the Great Resignation of 20212022, when millions of workers quit their jobs each month, more employees are now choosing to stay put for the sake of stability.
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A Federal Reserve Bank of New York report shows rising fears of job loss (14.5%, above the 12-month average) and a sharp drop in perceived chances of finding new work (down 5.8 points to 44.9%), especially among workers with only a high school education.
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Lower turnover reduces hiring costs, but experts warn that employees hugging their jobs may feel stuck, leading to disengagement, though some see this as a cultural shift toward valuing security and worklife balance.
During the pandemic, employees were on the move, in what was dubbed The Great Resignation. Things are different now, however
A new report from the Federal Reserve Bank of New York found many employees worried about finding another job. According to the report, the mean perceived probability of losing ones job in the next 12 months ticked up by 0.1 percentage point to 14.5%.
The reading is above the series 12-month trailing average of 14.0%. The mean probability of leaving ones job voluntarily in the next 12 months decreased by 0.1 percentage point to 18.9%, remaining slightly below its 12-month trailing average of 19.0%.
The mean perceived probability of finding a job if ones current job was lost fell markedly by 5.8 percentage points to 44.9%, the lowest reading since the start of the series in June 2013, the report states. The decline was broad-based across age, education, and income groups, but it was most pronounced for those with at most a high school education.
The findings are a stark reversal from 2021 to 2022, when at one point, 4.5 million employees a month were handing in their resignations, sometimes without moving into another position.
Job-hugging
Instead of job hopping, some human resource specialists see the trend in todays workforce as job hugging, with employees looking for stability. After years of pandemic uncertainty, inflation, and high-profile layoffs in industries from tech to media, many employees are clinging to their current positions for a sense of security.
According to recent survey data from HR consultancy firms, nearly 60% of employees who considered switching jobs in 2024 ultimately decided against it, citing concerns about economic instability and fear of being the last in, first out if layoffs occurred.
Employers see a shift
For employers, job-hugging presents a paradox. On the one hand, reduced turnover lowers recruitment costs and keeps teams stable. On the other hand, managers report that employees who feel stuck rather than engaged may show signs of disengagement, lower productivity, or quiet resentment.
The rise of job-hugging also reflects cultural changes. After years of hustle culture and constant job-hopping, some employees are choosing a slower career pace. Social media trends emphasize worklife balance, financial prudence, and mental health. Yet critics worry that job-hugging may stall innovation and professional growth.
Whether job-hugging is a temporary response to turbulent times or the beginning of a longer cultural shift remains to be seen. Some economists predict that once markets stabilize, workers will resume seeking better opportunities, reigniting competition for talent. Others believe a new appreciation for stability could reshape how companies think about retention, benefits, and career development.
Posted: 2025-09-09 12:37:52
