Australians Embrace ‘Job Hugging’ As Confidence In Job Market Drops

A new report from LinkedIn suggests Australians are opting to stay in their current jobs despite dissatisfaction, as fears about job hunting and market instability grow.

The phenomenon, dubbed “job hugging”, marks a reversal of the job-hopping trend seen in recent years, particularly during the so-called Great Resignation that followed pandemic-era disruptions.

Just over half of Australian workers (51 per cent) say they plan to look for a new job in 2026, down from 59 per cent last year, according to LinkedIn’s latest findings. The figures indicate a growing hesitancy to change roles, driven by economic uncertainty and perceived hiring challenges.

Shift From Resignation To Retention

Brendan Wong, LinkedIn Career Expert, said the market shift is clear.

“After the ‘Great Resignation’, we are seeing the opposite behaviour. 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.”

The research found that 69 per cent of Australians believe job hunting has become more difficult over the past year, largely due to increased competition. At the same time, 81 per cent say they feel unprepared to look for work in 2026.

Economic concerns remain the top reason behind reluctance to change roles, outweighing factors such as career progression or job satisfaction.

Ai Emerges As A Confidence Booster

While the broader workforce may be cautious, many job seekers are turning to Ai to ease the process.

One in two Australians say Ai tools would help them feel more prepared for job interviews. Nearly half (48 per cent) believe Ai could help reduce bias and bring greater consistency to interview processes.

The research also found that 36 per cent of respondents said Ai-led interviews would make them feel less nervous. Among Gen Z, that figure rises to 43 per cent.

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

Only 22 per cent of those surveyed said they were not planning to use Ai at all in their job search.

LinkedIn’s Top Jobs On The Rise For 2026

LinkedIn also released its annual Jobs on the Rise list for Australia, highlighting the most in-demand roles across the local job market.

The top 15 roles include:

1. Ai Engineer – Designing and building systems that perform data analysis, pattern recognition and predictions.
   
   
2. Chief Risk Officer – Managing risk exposure across finance, compliance and cybersecurity.
   
   
3. Mechanical Engineer – Supporting infrastructure and energy transition projects.
   
   
4. Director of Artificial Intelligence – Leading strategic Ai implementation across organisations.
   
   
5. Organisational Development Manager – Driving change-management strategies tied to Ai transformation.
   
   
6. Legal Director – Navigating regulatory issues, especially around technology and compliance.
   
   
7. Founder – Launching startups, particularly in health tech, climate and Ai.
   
   
8. Media Director – Coordinating multi-channel campaigns using Ai-powered content.
   
   
9. Regulatory Affairs Consultant – Advising businesses on compliance across fast-evolving legal landscapes.
   
   
10. Power System Engineer – Supporting Australia’s energy transition through infrastructure design and management.
    
    
11. Head of Environment, Health and Safety – Enforcing safety and environmental standards.
    
    
12. Psychotherapist – Addressing increased demand for mental health support.
    
    
13. Head of Sales – Leading sales strategy in Ai-augmented business environments.
    
    
14. Tax Specialist – Managing compliance in the context of international and digital economy tax shifts.
    
    
15. Strategic Partnerships Manager – Building innovation partnerships with Ai startups and research institutions.

Book Aims To Support Professionals Through Ai Shift

LinkedIn has announced the upcoming release of a new career book, Open to Work: How to Get Ahead in the Age of AI, co-authored by Ryan Roslansky, LinkedIn CEO and Executive Vice President of Microsoft Office & Copilot, and Aneesh Raman, Chief Economic Opportunity Officer at LinkedIn.

The book, set for release on 31 March 2026, will be available in physical, digital and audio formats, aiming to help professionals navigate Ai-driven transformation across roles and industries.

Pre-orders are available now at linkedin.com/opentowork

Wong’s Advice To Job Seekers

To help Australians prepare for a changing market, Wong offered the following tips:

• Meet the moment: Understand trends in your industry and identify relevant skills to focus your job search.
  
  
• Get comfortable with Ai: Begin incorporating Ai tools into your job search process.
  
  
• Keep your profile updated: Ensure your LinkedIn profile is accurate and highlights verified credentials.
  
  
• Leverage your network: Engage with your connections to surface new opportunities.

LinkedIn says over 1.3 million members are now using its Ai-powered job search tools daily, with more than 25 million weekly searches powered by the platform’s new search experience.

The research, conducted in January 2026, reflects growing demand for support and upskilling as Australians adjust to a new labour market shaped by Ai and macroeconomic headwinds.

Last Updated on January 15, 2026 by Nick Ross