A stagnating labor market is main employees to carry tightly onto their jobs, at the same time as rising office uncertainty stokes resentment and concern amongst workers, consultants warn. However whereas workers are staying put to climate the storm, this act of “job hugging” might solely be momentary as they put together to flee as quickly as market circumstances enhance.
The pandemic-era “Nice Resignation” noticed 47 million individuals give up their jobs in 2021 and 50 million extra in 2022 as they appeared for versatile working circumstances and better pay. As job openings and turnover returned to pre-Covid ranges in 2023, the mass exodus of employees transitioned to the “Nice Keep.”
Right now, as tariff uncertainty threatens corporations’ development plans and personal fairness funding slows—to not point out developments in AI stoking workers’ fears about being displaced—employees are staying put with further anxiousness. They’re involved that ought to they give up, they wouldn’t be capable of discover choices elsewhere, in response to consulting agency Korn Ferry. This act of “job hugging” has employees hanging onto their positions “for pricey life.”
“Given simply all of the exercise that occurred post-Covid after which a few of these fixed layoffs, persons are ready and sitting in seats and hoping that they’ve extra stability,” Korn Ferry managing advisor Stacy DeCesaro instructed Fortune.
Since 2024’s fourth quarter, the Eagle Hill Consulting Worker Retention Index has indicated rising worker intent to remain at their present jobs within the subsequent six months. The consultancy additionally noticed a 4.4-point drop in its Market Alternative Indicator final quarter, indicating a steep decline in worker perceptions of the job market. U.S. payrolls grew by simply 73,000 in July, and have expanded by a median of solely 35,000 within the final three months.
“Nobody is wanting to depart until they’re very sad or depressing of their job or simply really feel so unsettled by the corporate,” DeCesaro mentioned.
Rising worker frustrations
Simply because extra workers are sticking round doesn’t imply they’re comfortable about it. A November 2024 report from Glassdoor discovered that 65% of workers reported feeling “caught” of their present positions, together with 73% of these in tech roles. With fewer alternate options, sitting tight at one’s job has, for a lot of, resulted in cabin fever.
“It’s no accident that developments like ‘quiet quitting’ are resonating now,” Daniel Zhao, lead economist at Glassdoor, wrote within the report. “As employees really feel caught, pent-up resentment boils below the floor and worker disengagement rises.”
On prime of bleak job prospects elsewhere, workers are additionally grappling with a rotating door of firm administration, which has exacerbated emotions of discomfort and disconnect from a agency’s imaginative and prescient, DeCesaro mentioned. A few of her purchasers mentioned they’ve labored below three totally different firm presidents within the 18 months.
CEO turnover charges have reached their highest in a long time, with departures leaping 12% from June 2024 to 2025, in response to information from govt placement agency Challenger, Grey & Christmas, reaching the best ranges because the firm started monitoring turnover in 2002.
In different circumstances, DeCesaro mentioned, new administration has offered hope for workers, incentivizing them to stay round that for much longer, even when their office tradition finally doesn’t find yourself altering for the higher.
Taken collectively, these components have led to the rise of “quiet cracking,” workers reaching a breaking level and mentally trying out. The productiveness dip on account of worker disengagement price the world financial system $438 billion in 2024, in response to Gallup’s 2025 State of the International Office report.
‘Nice Resignation’ redux
Staff could have few different profession choices now, however as soon as market circumstances approve, this quiet discontent will little doubt imply deja vu for employers, DeCesaro mentioned: one other Nice Resignation is coming.
“As soon as the market improves, I feel it’s going to be tremendous lively as a result of there’s lots of pent-up demand of like, ‘I’ve been depressing right here for some time, however I’ve simply been ready for a greater alternative or a greater market to maneuver,’” DeCesaro mentioned.
If employers need to guarantee their employees don’t depart as quickly as they see different profession choices, they need to give attention to on the lookout for alternatives to open doorways of communication between administration and rank-and-file employees, in addition to take time to assemble and take heed to employees’ suggestions, in response to DeCesaro.
With some jobs remaining totally distant, there must be a continued effort to assemble annually or quarter to create a cohesive firm tradition.
“It’s going to be a fruit basket turnover of expertise,” DeCesaro mentioned. “However if you happen to’ve invested in your individuals between now and when that occurs, persons are going to be reticent to depart.”
