17/09/2025
Julia Mundell of Core-Asset Consulting explores the rise of ‘job hugging’ and what it means for both candidates and employers.

A new phrase is making waves in the employment market: ‘job hugging.’ It’s a trend that feels familiar to anyone who was in the recruitment industry in 2020.

As a recruiter who worked through the Covid-19 pandemic while many were on furlough, I witnessed and felt a sudden freeze in candidate movement. Even unhappy employees stayed put, fearing job security, market stability, or the challenge of joining a new team remotely.

Fast forward to today, and job hugging has become the new phrase to describe a similar behaviour: employees staying in their current roles even if they’re unfulfilled. It’s the opposite of job hopping and is being referred to as ‘The Big Stay’. While some claim it’s a Gen Z trend, we’re seeing it across all levels of the UK financial services sector, from early-career professionals to seasoned specialists, and even contractors moving into permanent posts.

Unlike the ‘Great Resignation’ of 2021–22, when many chased higher pay, career progression, or greater flexibility, today’s workforce is prioritising security. Economic uncertainty, rising costs of living, cautious corporate spending, and ongoing restructures all make staying put feel like the safer choice.

During the pandemic, the UK went from a record low of 328,000 job vacancies in April-June 2020 to a record high of 1.3 million in March-May 2022.

But as we learnt during Covid, the market will pick up again. And when it does, employers who aren’t prepared risk being caught off guard by sudden attrition. During the pandemic, the UK went from a record low of 328,000 job vacancies in April-June 2020 to a record high of 1.3 million in March-May 2022. When the market recovers, it can be swift and unpredictable. Having a pipeline of contractors and temporary workers is one of the most effective ways to stay agile.

For candidates, the key is not to let fear dictate your career decisions. There are vacancies out there. Don’t stay unhappy out of caution. Instead, make informed moves that support your long-term goals.

How big is the job hugging trend?

Total job vacancies from May to July 2025 stood at just 718,000 – nearly half of their peak in 2022. Data on job-to-job moves is not yet available for this year, but it is unlikely to approach the post-Covid peak and will probably follow the trend of 2024, when LinkedIn’s Workforce Report recorded an 8% year-on-year decline in job transitions.

I’ve been with Core-Asset for 11 years because of the progression, support, and challenge my employer offers. That’s not job hugging; that’s career growth. It helps that I love my colleagues too.

Julia Mundell Business Manager, Interim, Temporary & Contract

Is job hugging helping or holding you back?

For employees, staying can offer financial stability and show reliability to future employers. But there’s a difference between staying because you’re happy and challenged, versus clinging to a job you don’t want out of fear.

I’ve been with Core-Asset for 11 years because of the progression, support, and challenge my employer offers. That’s not job hugging; that’s career growth. It helps that I love my colleagues too.

If you’re already disengaged, staying rarely reignites motivation. Employers look for progression on CVs, and we find that long periods without visible development can raise as many questions from our clients as frequent moves.

What should candidates do?

  • Explore internal options - secondments, training, added responsibility. Feeling like you are adding to your skillset and learning in your role can revive your interest and make you feel like you are developing.
  • Stay connected to the market - speak to recruiters, even for exploratory conversations, as it will give you a clearer view of what’s available.
  • Attend interviews - it builds confidence, and if the business hasn’t convinced you that it’s a secure and fulfilling move, you don’t need to explore it further.

Security matters, but don’t let fear stop you from recognising when your role no longer supports your goals. Will there ever be a right time?

But employees aren’t the only ones affected. For employers, job hugging brings both benefits and risks.

What does job hugging mean for employers?

On the surface, lower turnover looks positive for employers: reduced recruitment costs, stable teams, and less disruption. However, beneath that calm, risks build up:

  • Quiet quitting: employees who stay physically but disengage mentally. Your team might be more productive with a higher turnover that brings in passionate and engaged new team members.
  • Pent-up attrition: staff leaving en masse once confidence returns. The Covid pandemic shows how quickly the market can surge from record low job movement to record high.
  • Stalled innovation: fewer new hires means fewer fresh ideas and perspectives.

How can employers mitigate risk?

  • Keep employees engaged with progression, training, and secondments.
  • Build talent pipelines now to prepare for future movement.
  • Use contractors and temps to maintain agility, inject new skills, and manage workloads without long-term cost commitments.

Candidates should explore opportunities rather than stay stuck, and employers should balance retention with flexible hiring strategies.

Julia Mundell Business Manager, Interim, Temporary & Contract

What should you do next?

Just as Covid reshaped job-seeking behaviour, today’s uncertainty is fuelling a new form of career caution. Job hugging is a natural response, but it carries risks for both employees and employers.

My advice is to stay proactive. Candidates should explore opportunities rather than stay stuck, and employers should balance retention with flexible hiring strategies.

At Core-Asset Consulting, we specialise in supporting both candidates and clients through shifting dynamics in the UK financial services sector. Whether you’re a professional exploring your next move or an organisation building resilient, flexible teams, we provide the insight, connections, and guidance to make confident and informed decisions. From temporary and contract roles to permanent placements, our expertise helps you navigate the market with clarity. Get in touch with us today to discuss how we can support your goals, and help you prepare for whatever the market does next.