A stagnating labor market is main employees to carry tightly on to their jobs, whilst 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 non permanent as they put together to flee as quickly as market situations enhance.
The pandemic-era “Nice Resignation” noticed 47 million individuals stop their jobs in 2021 and 50 million extra in 2022 as they seemed for versatile working situations 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.”
At this time, as tariff uncertainty threatens firms’ progress plans and non-public fairness funding slows—to not point out developments in AI stoking workers’ fears about being displaced—employees are staying put with additional anxiousness. They’re involved that ought to they stop, they wouldn’t be capable of discover choices elsewhere, in line with consulting agency Korn Ferry. This act of “job hugging” has employees hanging on to their positions “for expensive 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 marketing consultant Stacy DeCesaro informed 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 mean of solely 35,000 previously 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 stated.
Rising worker frustration
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 traits 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 underneath 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 stated. A few of her purchasers stated they’ve labored underneath three completely different firm presidents previously 18 months.
CEO turnover charges have reached their highest in many years, with departures leaping 12% from June 2024 to June 2025, in line with information from government placement agency Challenger, Grey & Christmas, reaching the very best ranges because the firm started monitoring turnover in 2002.
In different instances, DeCesaro stated, 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 economic system $438 billion in 2024, in line with Gallup’s 2025 State of the International Office report.
‘Nice Resignation’ redux
Workers might have few different profession choices now, however as soon as market situations enhance, this quiet discontent will little question imply déjà vu for employers, DeCesaro stated: One other Nice Resignation is coming.
“As soon as the market improves, I believe it’s going to be tremendous lively as a result of there’s a whole lot 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 stated.
If employers wish to guarantee their employees don’t depart as quickly as they see different profession choices, they need to deal with searching for alternatives to open doorways of communication between administration and rank-and-file employees, in addition to take the time to assemble and hearken to employees’ suggestions, in line with 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 stated. “However should you’ve invested in your individuals between now and when that occurs, persons are going to be reticent to depart.”
