What job hugging tells us about confidence, mobility, and recruitment this year

Australian workers are entering 2026 with a cautious mindset. New research from LinkedIn shows that just over half of Australians plan to look for a new job this year which is a drop from fifty nine percent in 2025. Workers say the market feels uncertain and highly competitive which makes changing roles feel riskier than staying put. This trend, dubbed job hugging, shows the dip in confidence across the workforce. Nearly seven in ten Australians say finding a job has become harder over the past year and four in five say they feel unprepared to search for a new role in   2026. Economic uncertainty and the rising influence of AI in recruitment are shaping this behaviour and prompting many workers and contractors to prioritise stability. Instead of leaving roles that no longer fit, people are choosing the familiarity of their current workplaces because the risk of change feels too great.

Uncertainty driving staying

Workers and contractors are staying because they cannot predict the outcome of a job change, not because they feel deeply connected to their current employer.

Australian workers are staying because the market feels harder and more competitive to navigate, not because of renewed loyalty. Nearly seven in ten say job hunting has become harder over the past year, and four in five feel unprepared to look in 2026. Brendan Wong at LinkedIn   captures the mood, noting Australians are staying in roles they might have otherwise left because the market feels uncertain and the risks feel high. AI is part of the hesitation, with one in three Australians saying they feel unprepared for how AI is reshaping recruitment. Workers and contractors are staying because they cannot predict the outcome of a move, not because they feel deeply connected to their current employer.

What Whizdom is seeing in the market

• Candidate caution is real. Only about half of Australians plan to look in 2026. Most say the search has become harder, and many feel unprepared for new AI elements in selection.
• Applications per ad have risen while job ads have stabilised, which increases screening load and can slow hiring where approvals are layered.
• Through mid to late 2025, applications per ad reached record highs, reinforcing the screening challenge heading into 2026.
• Government and regulated work remain steady, and cleared capability continues to be sought across Baseline to NV2 levels, consistent with national emphasis on digital and cyber skills.
• Renewals are more common as clients choose continuity, and many contractors accept extensions when the alternative is a longer search. This aligns with vacancies easing slightly into late 2025 while remaining elevated by historical standards.
• Demand is resilient in cyber security, data, enterprise platforms and delivery roles, in line with projections for professional occupations and ongoing tech skills gaps. Indeed’s 2026 outlook shows postings still above pre‑pandemic baselines and rapid growth in roles mentioning AI.
• Salary bands are holding in many teams, with limited real wage gains through 2025, while specialist contract markets remain selective.
• Flexibility remains decisive. Candidates expect clear hybrid patterns and predictable hours, and they respond to transparency on process, timeline and evaluation criteria.

Closing thought

Job hugging makes the market look calm while it resets. That calm is built on risk management, not loyalty. The danger is misreading the stillness and reacting late. In 2026, the employers who struggle will not be the ones with movement. They will be the ones who mistook stillness for health. Clean up the signals now and plan for a faster phase.

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