A new report from consultancy Korn Ferry says the post-pandemic era of rapid job switching has given way to “job hugging,” a practice in which employees hold on to their current positions amid a cooling U.S. labor market. The Bureau of Labor Statistics puts the voluntary quits rate at 2.0% in June, down from a 3.0% peak in November 2021, while separate data show overall hiring has fallen to its slowest pace in more than a decade. Korn Ferry links the change to higher borrowing costs, AI-driven restructuring and broader economic and geopolitical uncertainty. Employers are also growing more cautious: a recent Conference Board poll found 34% of chief executives expect to shrink their workforce over the next 12 months, versus 27% who anticipate expanding staff. The tighter market is shaping worker behaviour, especially among younger employees. A survey by résumé site Resume Templates of more than 800 full-time Gen Z workers found 77% had brought a parent to at least one job interview, underscoring the anxiety surrounding new employment opportunities.