What is ‘job hugging’ and why are more UK workers doing it?
New trend emerges as job market weakens
- UK workers are increasingly "job hugging", prioritising security over ambition as confidence in the job market has weakened since last year's autumn budget.
- The UK's job market slumped after the October 2024 budget, with employment levels declining by 0.9 per cent in December, an unusual pre-Christmas trend.
- This slowdown followed Chancellor Rachel Reeves' plans to hike business taxes through a higher rate of National Insurance, effective from April.
- Although there has been a rebound since February, with a 1.7 per cent rise in July, annual growth is less than half of the previous year, signalling a market slowdown.
- A survey found 55 per cent of employees, particularly younger workers, are prioritising security by clinging onto roles, with many feeling there is too much competition for jobs.