AI was cited as a reason for just over 10,000 job cuts this year, per Challenger, Gray & Christmas

he Great Resignation is quickly fading as more workers choose to stay in their current roles, a trend that’s being described as “job hugging.” The 2025 Eagle Hill Consulting Employee Retention Index suggests this stickiness will persist for at least the next six months. Korn Ferry, which coined the term, attributes the trend to mounting global uncertainty and the disruptive potential of artificial intelligence. Matt Bohn, a senior client partner at the firm, explained in a post that unpredictability in world events and looming technological shifts are making workers increasingly hesitant to take risks.

This job-hugging environment creates ripple effects across the labor market. Normally, employees change roles every few years, creating openings for new entrants. But with fewer people moving, opportunities are drying up, leading to tougher competition for available jobs and, in some cases, downward pressure on wages. The struggles of job seekers reinforce the trend—many workers see others applying to dozens of positions without success, and with high living costs leaving little margin for error, staying put feels safer than risking months without income.

Employers, meanwhile, have gained leverage in this climate. Companies now have a chance to hold onto top performers longer than usual, reducing turnover and allowing time to develop talent internally. Korn Ferry’s Dennis Deans noted that fewer external departures mean firms can invest more in career growth and performance management, building stronger teams in the process. Still, analysts caution that job hugging could be like a coiled spring: once the labor market improves, pent-up frustration may spark another w