Job hugging to continue in Australia in 2026

Australians are expected to remain with their current employers this year amid uncertainty and tight competition in the job market, according to a new report.

Findings from LinkedIn's latest report reveal that the job hugging phenomenon first observed in Australia last year will extend until 2026.

It found that just 51% of Australians plan to look for a new job, with economic uncertainty emerging as the top reason why employees are hesitant to change employers.

According to the report, 69% of Australians also noted that finding a job has become more difficult over the past year because of increased competition.

Another 81% also said they don't feel ready for the job search in 2026, with 36% noting that they are unprepared for how AI is changing employers' recruitment approaches.

Brendan Wong, LinkedIn career expert, said this behaviour is the "opposite" of what was observed during the Great Resignation.

"Australians are job hugging, staying in roles they might have otherwise left because the market feels uncertain and highly competitive," Wong said. "When four in five people say they feel unprepared to job hunt, it's not surprising many are choosing stability over risk."

This behaviour is an extension of how employees behaved last year, after the ELMO Employee Sentiment Index found that just 18% of employees were considering a career move.

But job hugging comes with risks, as the ELMO report warned that "stability without growth can quickly turn into stagnation."

Can AI make a difference?

With artificial intelligence tools making their way into recruitment processes, employees are also considering embracing the technology in their job search, according to the LinkedIn report.

Less than a quarter (22%) of jobseekers are not planning to use AI in their job search, while 50% said AI tools would make them feel more prepared heading into an interview.

Employers' use of AI in recruitment is also giving some employees confidence, with 48% seeing the technology as a way to reduce bias and standardise interviews.

Another 36% of employees believe that AI-led interviews would make them feel less nervous, while 46% agreed that AI interviews are becoming necessary to land a role.

"AI can help by giving people the confidence and tools to prepare, even if they are not ready to move just yet," said Wong.