The Risks of Job-Hugging in Today's Economy

Reported 2 days ago

In a weak labor market, many workers are hesitant to leave their current jobs, a trend known as 'job-hugging.' As businesses plan to maintain modest salary increase budgets around 3.5% for 2026, employees may not be rewarded for their loyalty. Data suggests that while job switchers can see higher pay growth, the overall advantage has diminished since the pandemic's labor shifts. Workers face a potential 'loyalty penalty' by sticking with one employer too long, as salary growth tends to be lower compared to those who change jobs. Navigating career advancements and pay requires a careful balance of staying with familiar roles versus seeking new opportunities.

Source: YAHOO

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