American workers are clinging to their jobs at rates not seen in nearly a decade as economic uncertainty and a cooling labor market make employees hesitant to seek new opportunities.
The share of workers voluntarily leaving their jobs this year has hovered around 2%, the lowest level since before 2015, according to recent labor data. Experts say concerns over a softer job market, slower wage growth and dwindling openings are keeping many in “job-hugging” mode — a sharp contrast from the mass job-switching of “The Great Resignation” following the COVID-19 pandemic.
“The job market has certainly softened,” said Laura Ullrich, an economist with Indeed. “And at the same time, there’s a lot of economic uncertainty in 2025. When times are more uncertain, people tend to stay put.”
New research shows that job switchers are now earning smaller pay bumps than they did in 2022, and in some cases, less than before the pandemic. Ullrich said that for many workers, staying in their current role offers better financial stability.
RELATED STORY | Economic jitters keep workers in their jobs as openings decline
“We are actually seeing an unusual pattern right now where wage growth for job switchers is actually lower than that of job savers,” she said. “That does show quite a bit of stagnancy in the market.”
This trend is most common in white-collar fields such as finance, tech, business services, and law. The slowdown is also making it harder for young professionals to break into the job market.
“If there aren’t a lot of people leaving their jobs, and there’s not a lot of people being laid off, there’s not a lot of turnover,” Ullrich said. “There's not room created at the bottom for new entrants.”
That’s a reality recent college graduate Taylor Koontz has felt firsthand.
"I feel like my days go by so slow because I'm like, what am I going to do next? What's my career going to be?" she said.
Ullrich pointed to spiking global economic policy uncertainty — driven by geopolitical risks and business caution — as a factor slowing both hiring and decision-making.
A University of Michigan survey recently found that 58% of consumers expect the U.S. unemployment rate to rise — the highest share since the Great Recession.
This story was initially reported by a journalist and has been converted to this platform with the assistance of AI. Our editorial team verifies all reporting on all platforms for fairness and accuracy.
