New report shows stronger job availability confidence in Australia
Employees in Australia are feeling more confident about available job opportunities for them, according to a new report, which signalled the potential decline of job hugging amid improving labour market sentiments.
Job hugging refers to a trend in which employees choose to stay put amid economic uncertainty and a difficult job market.
The trend was strongly observed globally, even in Australia, last year, with previous reports indicating that the practice would extend until this year.
Decline of job hugging
But findings from Gartner's recent Global Talent Monitor are signalling a potential reversal of this trend.
According to the findings, job availability confidence in Australia went up to 56.3 in the second quarter of 2026, an improvement from the three-year low of 55.7 at the end of 2025.
It also revealed that 26.5% of Australians were actively seeking a new role in the second quarter, up from 19.4% at the end of last year.
Employees planning to stay with their current employer also decreased to 34%, down from 38.1% in the last quarter of 2025.
The findings come as confidence in the overall business environment reached 48.8, improving from 47.4 in the fourth quarter of 2025 (4Q25), and the highest rate in the last four years.
"Employees are beginning to see more opportunities emerge after an extended period of caution in the Australian labour market," said Neal Woolrich, director analyst in the Gartner HR practice, in a statement.
"While job confidence remains below the highs seen in 2024, employees believe they have greater choice and mobility than they did six months ago. This is creating modest movement in the job market, despite ongoing cost pressures, productivity concerns, and continued uncertainty surrounding the impact of AI on jobs and skills."
A retention risk for employers
As employees' confidence in job prospects shifts, employers are being urged to reassess how they plan to retain staff.
"Employers now need to focus on the factors that genuinely encourage people to stay, including career growth, manager quality, flexibility, and meaningful work experiences," Woolrich said.
Gartner's findings revealed that the strongest drivers of attrition in workplaces are manager quality, respect, work-life balance, people management, and coworker quality.
Compensation also remained a strong driver, despite slightly losing influence, as well as location, recognition, innovative work, and future career opportunity.
"Retention strategies built for a constrained labour market may not be sufficient in a more confident one," Woolrich warned.
His remarks echo previous sentiments from experts during the job hugging trend, when they were told to take advantage of the opportunity to develop talent and introduce more internal career paths.
