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A new trend is emerging in the UK workforce as employees hold tightly to their current jobs, rather than pursue new opportunities. The phenomenon, dubbed “job-hugging,” reflects rising caution and anxiety in a labour market struggling to recover.
Employment Hero’s first Annual Jobs Report combines data from more than 350,000 small businesses and 2 million employees across Australia, New Zealand and the UK with a YouGov survey of 3,635 UK workers. It shows how concerns about security and competition are reshaping workforce behaviour.
The figures highlight a shift in priorities. More than half (55 per cent) of UK workers now put job security ahead of career ambition – a figure that climbs to 65 per cent among 18 to 34-year-olds. Over half (51 per cent) say they are unlikely to leave their current role, while nearly six in ten believe the labour market is worsening.
For younger workers, the sense of pressure is acute. A majority (53 per cent) of 18 to 34-year-olds say there is too much competition for roles, compared with 40 per cent across the wider workforce. This competition is eroding confidence and placing new strains on wellbeing, with many younger employees turning to freelance or side work simply to gain enough experience to secure interviews.
Behind the numbers are broader economic concerns. While pay growth remains positive, inflation is still eating into real wages. The employment rate in July stood at 3.1 per cent, far below last year’s growth rate of 8 per cent. At the same time, job openings are limited, and business costs remain high, creating a sense of fragility across the economy.
Kevin Fitzgerald, UK Managing Director at Employment Hero, said the mood reflects both uncertainty and resilience. He said:
“While the labour market is showing early signs of recovery, our data shows we’ve still got a long way to go before workers feel confident again. With most people holding a negative view of the jobs market, it’s no surprise we’re seeing more job-hugging as employees look to weather the storm. But this isn’t a long-term solution. Job mobility is key for growth, both for people and businesses.”
The impact of job-hugging on wellbeing is not straightforward. For some, staying put offers stability and reduces stress in uncertain times. For others, it means missed opportunities, frustration and financial strain. Younger workers in particular risk burnout as they juggle secure roles with freelance projects to build skills and experience.
Small business owners are also feeling the pressure. Rising wage bills and operating costs are limiting hiring capacity, forcing many to take on more work themselves. Café owner Anthony Mazari described the impact:
“I want to provide employment to as many people as I can but increasing business costs and wages mean that I simply can’t afford it. These pressures mean I end up doing everything myself, running the business while also stepping behind the counter to serve customers.”
Despite the challenges, the report finds reasons for cautious optimism. Full-time employment is recovering faster than part-time and casual work, and many small businesses are finding ways to adapt. But the overall message is one of fragility, with confidence in both the economy and the labour market dependent on policy decisions in the months ahead.
