Why Australians Are 'Job Hugging' - The New Career Trend You Need to Know

The Rise of 'Job Hugging' in Australia

Fearful Australians are refusing to leave jobs that are no longer suitable, as a weakening economy and the rise of AI has sparked a new career trend known as 'job hugging'. A recent LinkedIn survey of 2000 people reveals that 59% of Australians plan to stay in the same job in 2026, as confidence in the job market fades.

Key Drivers Behind the Trend

According to the survey, economic uncertainty is the top reason Australians are reluctant to change jobs, while nearly seven in 10 say finding a new job has become harder due to increased competition. Additionally, four in five people report feeling 'unprepared' to find a new job, and a third express wariness about the role AI will play in their potential job hunt.

LinkedIn career expert Brendan Wong explains, 'We are seeing people are just trying to stay put instead of joining the increased competition and getting a new role. The job market is tougher, there is more competition for fewer jobs, and I think AI is shaping that.'

Implications for Employers and Employees

Mr. Wong points out that while Australia's employees have shifted from a period of 'great resignation' to 'job hugging,' this might not be a win for employers. 'For employers, with people choosing to stay even if they don't like the job, it becomes important that they pay attention,' he said. 'It is easy to say more people are choosing to stay, but employers need to address what is underlying that. That could be providing opportunities for upskilling, internal mobility, so give them opportunities if your talent is going to stay.'

The Growing Impact of AI on Careers

The research highlights that artificial intelligence is having a greater impact on Australians, with employers increasingly seeking skills in this area. Leaders are now hiring Australians who may be less experienced but possess AI skills. Mr. Wong notes, 'A year or two ago AI was nice to have, but now we are seeing it move from something niche into the mainstream, so people that want to get ahead should be levelling up their abilities in AI.'

He emphasizes the importance of focusing on human skills that AI can't replicate, such as communication, problem-solving, and creativity. 'On top of that it is also really focused on the things AI can't do that makes people human, those things are coming to the forefront.'

Practical Advice for Job Seekers

For Australians looking for a new job in 2026, Mr. Wong recommends upskilling, particularly in AI. 'It is very important to learn how to use the different AI tools, as it applies to both doing your work, but also using it in the job search aspect,' he said. The survey supports this, with one in two Australians saying AI tools would make them feel more prepared for an interview, and 36% noting that AI-led interviews would reduce nervousness, rising to 43% among Gen Z.

In-Demand Roles in the Current Market

Despite the overall fears, LinkedIn points out that several roles are on the rise. These include AI engineers, director of artificial intelligence, and chief risk officer. Roles supporting infrastructure and the energy transition, such as mechanical engineers and head of environment positions, remain in demand. Additionally, more humanized jobs in mental health and organizational change are prominent, with psychotherapists and organizational development managers among the fastest-growing roles.