Workers are job-hugging as AI and economic fears kill career moves

Workers across industries are increasingly “job-hugging”—clinging to their current positions despite wanting better opportunities—as economic uncertainty, AI threats, and policy changes create widespread workplace anxiety. This trend marks a stark reversal from the Great Resignation, with quit rates dropping from 4.5 million during the pandemic to 3.09 million in 2025, reflecting a workforce more apprehensive than it’s been in years.

What you should know: The job market has fundamentally shifted from worker empowerment to employee anxiety, driven by multiple converging factors.

• Federal Reserve data shows just 44.9% of respondents feel confident they could move between jobs—a record low.
• A recent Associated Press poll found 47% of US adults lack confidence in finding good employment, up from 37% in October 2023.
• Companies have slowed hiring since March 2022 and are less willing to offer competitive salaries than during the pandemic.

Why this matters: Job-hugging creates economic stasis that hurts workers at all levels and broader economic mobility.

• When experienced workers stay in positions longer, it blocks advancement opportunities for younger employees like 23-year-old Claire, who remains in a low-paying marketing role despite wanting to advance.
• Labor economist David Blanchflower warns this reflects “a growing distrust in the promise of work” among Gen Z, who view the system as rigged.

The AI factor: Artificial intelligence is fundamentally changing how workers and employers view job security and career planning.

• AI makes it unclear which positions companies actually need, prompting widespread reevaluation of roles.
• Job seekers face automated resume screening that makes it harder to stand out.
• “Now you just don’t see the daylight—if AI continues on its trend, there’s no point of reckoning where you feel safe,” said Jason Walker of Thrive HR Consulting, a management group.

Policy pressures: Trump administration changes are creating additional workplace stress in key industries.

• Healthcare workers face uncertainty from potential Medicaid cuts and immigration enforcement.
• Federal contractors and university researchers worry about funding cuts and layoffs.
• The ongoing government shutdown adds another layer of economic anxiety.

What they’re saying: Workers describe feeling trapped between economic necessity and career ambitions.

• “I’d be fearful to make a move right now. Going into a new position and going into the bottom of the ladder would mean I’m more at risk,” Claire explained.
• Starbucks employees Kayleigh Shuler and Joss Nelson lost their jobs when the company closed 20 local cafes: “They’re not playing nice anymore. We’re both still a little shellshocked.”
• Jason Brandt, 64, who sells hot tubs, worries about ageism: “Who’s going to want a washed up 64-year-old to come work for them, especially in this economy?”

Signs of hope: Some experts detect early indicators that worker confidence may be recovering.

• Jonathan Gove of Eagle Hill Consulting, a Boston-based firm, reports their employee retention index shows “a boost in worker confidence from a pretty significant all-time low.”
• Healthcare worker Danielle successfully transitioned to concierge medicine despite her fears: “Taking that step was terrifying. It’s taken me a long time to pull the trigger.”