Job-Hugging Overtakes Ambition In A Stagnant Employment Landscape

The job market is operating under entirely different rules these days. Most employees aren’t chasing fresh opportunities, they’re clinging to the ones they already have.

There is a name for this emerging trend: job-hugging. Drawing on aggregated data from more than 350,000 small businesses and 2 million employees across Australia, New Zealand, and the UK, alongside a YouGov survey of 3,635 workers, Employment Hero’s inaugural Annual Jobs Report provides a comprehensive snapshot of the UK employment landscape. It also highlights the roots of workers’ and businesses’ caution in this uncertain climate.

Post-Budget aftershocks 

A hangover from knee-jerk responses to last year’s Autumn Budget and the anxieties that arose in its wake, this new normal has emerged in a struggling labour market. At 3.1% as of July 2025, the employment rate compared to 2024 has been sluggish. Last year, employment growth hovered around 8%.

The competition is heating up

The YouGov survey further reveals the scale of cautious behaviour among employees. Fifty-five percent of UK workers now prioritise job security over career ambition, a figure that rises to 65% among 18-34-year-olds. More than half of respondents (51%) report they are unlikely to leave their current role, while 59% believe the labour market is deteriorating. Younger workers in particular feel competition is fierce, with 53% of 18-34-year-olds reporting too much competition for roles, compared with 40% across the wider workforce.

Twenty-four-year-old digital marketing specialist Rhys has experienced some of these barriers to entering the workforce.

“When I graduated, I realised that a CV alone wasn’t enough. Every entry-level role wanted years of experience,” he explains, speaking to a challenge that many young graduates are now facing.

“I had to jump into freelance content work to build a portfolio. If I hadn’t done that, I wouldn’t have even made it to my first interview. For my generation, having a side hustle isn’t just optional, it’s essential if you want to get your foot in the door.”

For employees like Rhys, the idea of attempting to secure employment elsewhere seems almost ill-advised in this climate, even if, in the past, it might have been the fastest route up the career ladder.

Short-term gains 

The jobs report outlines several drivers of this cautious behaviour. Pay growth remains positive, but rising inflation continues to erode real wages. Meanwhile, fewer job openings are available and apprehension is spreading.

“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,” says Kevin Fitzgerald, UK Managing Director at Employment Hero.

“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.”

Light at the end of the tunnel

Despite these challenges, there are signs of resilience. Full-time employment is recovering faster than part-time or casual roles, and small businesses continue to demonstrate resourcefulness, sustaining operations and supporting employees amid uncertainty.

Café owner Anthony Mazari, 36, has coped with the fallout from slower growth by picking up the slack himself.

“It’s a turbulent time to be a small business owner. 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.”

For business owners like him, it is a reminder that the labour market remains fragile, and policy decisions in the upcoming Autumn Budget could have a significant impact on both business confidence and workforce mobility.