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The so-called “great resignation” became a “great stay.” But experts say workers don’t just stay – they “hold their work.”
Job hugs are the act of keeping your job “for Dear Life” written this week by a consultant at organizational consulting firm Korn Ferry.
This kind of cling is in stark contrast to the historic proportion of employment hopping exhibited by workers in 2021 and 2022, but makes sense given current labour market trends.
“There’s this stagnation in the labour market, where employment, quitting and layoff rates are low,” said Laura Ulrich, North American economic research director at the Actual Employment Lab. “There’s not much movement.”
“World Uncertainty”
The proportion of workers voluntarily quitting their jobs has remained near invisible lows since around 2016, outside of the early days of the Covid-19 pandemic.
The so-called resignation rate is a barometer of workers’ perceptions of the broader labor market, Ulrich said. In this case, they may be nervous about getting another job or not keen on their ability to find it, she said.
“There is a considerable amount of uncertainty in the world,” said Mattborn, executive search consultant at Corn Ferry.
He equated dynamics with skittish investors who occasionally sat on the bystanders waiting for investment opportunities.
Additionally, the employment market is gradually cooling amid a higher interest rate regime, making it more expensive for businesses to borrow money and expand their business.
Employment rates over the past year or so have plunged to their lowest rates for over a decade (except early in the Covid-19 pandemic). This means that people looking for a new job may be having a relatively hard time.
Job growth has also slowed sharply over the past few months, with economists pointing it to as evidence of a wider economic slowdown.
According to a quarterly poll by the conference committee, released last week, the first incident since 2020 was reported to be planning to reduce the workforce over the next 12 months rather than expanding. The shares ranged from 34% to 27%, respectively.
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While staying in work for a long time isn’t inherently bad, experts said “hugging” jobs can pose some risks to unfair people.
For one, they could be at the expense of some revenue growth, as job swiders generally order higher wage growth than those who remain in their current roles, Ulrich said.
For example, workers who are too comfortable in their current roles may be stagnant rather than taking additional responsibility or learning new skills. This can affect marketability and career growth as the labor market improves. Employers may also determine that such workers do not meet performance standards, he added.
Furthermore, the lack of movement in the job market may make it difficult for newcomers like recent graduates to find jobs, Ulrich said.
