Workers are 'hugging' their jobs. There's a right and wrong way to do it

Group 1 - The "quits" rate has reached 2%, the lowest sustained level since 2016, indicating a trend of workers staying in their jobs longer [2] - Approximately 52% of new hires have changed jobs only once in the past two years, an increase from 43% in Q2, reflecting a shift towards job stability [2] - Job growth has significantly weakened, with hiring slowing to its lowest level since 2013, excluding the early days of the Covid-19 pandemic, leading to increased job security concerns among workers [3] Group 2 - Employers are also reluctant to lose workers due to the challenges faced during the "great resignation" of 2021 and 2022, resulting in a cautious approach to workforce management [5] - Economic uncertainties, including tariff effects and growth concerns, have made companies hesitant to expand their workforce [6] - The job market may improve for job seekers if the Federal Reserve cuts interest rates, potentially encouraging employers to increase hiring [7] Group 3 - Staying in a job can pose risks, particularly for workers who do not seek growth opportunities, as complacency may lead to job insecurity [8] - Managers may lay off employees based on both objective metrics and subjective perceptions, emphasizing the need for workers to stand out [9] - In a job-hugging market, employees may need to work harder to impress their employers, who may feel they can demand more due to reduced hiring activity [10] Group 4 - Workers should focus on relationship-building and expanding their social capital to prepare for future job opportunities [12][14] - Engaging with customers and maintaining connections can position workers favorably when the economy improves [11] - Building a network during this period is crucial, as those with strong social capital will likely be the first to receive job offers when the market rebounds [15]