Labor market shows staying power amid uncertainty

A stagnant labor market keeps workers in place while discontent rises, signaling a potential wave of resignations when conditions improve.

Workers cling to jobs in stagnant market as resentment grows leading to a coming Great Resignation looms

A stagnant labor market is pushing workers to stay in their current roles, a practice some call job hugging. Consultants warn this restraint can breed anxiety and resentment toward employers, even as it tempers turnover in the near term. Korn Ferry notes workers fear they would struggle to find a new position if they quit, while Eagle Hill Consulting’s retention index shows more people plan to stay over the next six months. July payrolls expanded by 73,000, with a three-month average of about 35,000, underscoring a fragile, low-growth labor environment.

Yet the mood inside many workplaces remains tense. A Glassdoor report from November 2024 found that 65 percent of workers feel stuck in their roles, with higher figures in tech. The rise of frequent management changes—CEO turnover up 12 percent from 2024 to 2025—adds to a sense of disconnection from a shared company vision. Some leaders still spark hope when they bring in new direction, but the overall vibe is one of fatigue and uncertain prospects. Gallup estimates that disengagement cost the global economy about 438 billion dollars in 2024, highlighting the cost of inaction on the people side of business.

The trend shows a paradox: workers protect their current jobs even as they grow more anxious and less engaged. If leaders want to avoid a fresh wave of departures, they must transform the stay into a real opportunity—open channels for feedback, consistent communication, and visible investment in career growth. The risk is that a protracted stay without improvement becomes a silent resignation to a stagnant culture. When markets recover, pent-up desire to change jobs could explode into a new Great Resignation unless firms act now. Remote work options, clearer paths to advancement, and steady leadership may become the new levers of retention in an uncertain economy.

Highlights

The path forward lies in listening closely and acting decisively before a sudden exit rush reshapes the job market.