'Job hugging' trend hits Australia

New report reveals fewer employees are considering a career move

'Job hugging' trend hits Australia

The "job hugging" trend is taking over Australia, according to a new report, that urges ing employers to provide training to avoid employee stagnation.

The latest ELMO Employee Sentiment Index (ESI) found that only 18% of employees are considering a career move, down from 23% in the previous quarter.

"Caution continues to shape the labour market, with job security now taking precedence over exploration," the report read.

 

The findings indicate that employees in Australia may have begun "job hugging," an emerging trend overseas where workers decide to stay with their current employers amid pessimism about job opportunities.

Employee stagnation warning

But the report warned that employees choosing to stay could lead to stagnation, especially with 11% of employees feeling their current skill set is already falling behind and 21% saying they haven't received any form of training in the past year.

"After a period of uncertainty, employees are choosing security. But stability without growth can quickly turn into stagnation. To build future-ready organisations, we need to help people learn, adapt, and grow," said ELMO Software CEO Joseph Lyons in a statement.

More than three in four employees (79%) said they received some training in the past 12 months. However, the report noted these were short-term or compliance-driven, such as general awareness sessions (40%) or role-specific technical training (38%).

When it comes to AI, just 20% said they feel adequately supported by their employer with related training. Nearly half (44%) of the respondents also feel their employers aren't doing enough to reskill or upskill the workforce.

Impact on retention

Stagnation's impact is not only on employees, but also on organisations, according to the findings.

Three in five employees (61%) said they would consider leaving their organisation if their career growth or skills development stalled. Another 21% said they would definitely depart.

"Employees recognise AI will transform their roles, but many don't feel equipped to keep up. Bridging that gap is essential for Australia's productivity, competitiveness and confidence," Lyons said.

"AI is changing how we work, but it doesn't change the value of people. Technology can't replace creativity, critical thinking or compassion, but it can amplify them. The future of work will depend on keeping the human in the loop: designing workplaces where people and technology learn from each other."

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