You’ve been at your new job for a few months and, unfortunately, you’re not enjoying it. However, due to the uncertain economic conditions, you’re hesitant to leave.
This scenario is becoming increasingly common among Canadian workers, as reflected in employment data and stories from those who joined the workforce post-pandemic. This trend has given rise to a new term known as “job hugging,” where individuals cling to their jobs despite feeling dissatisfied.
A woman in her 30s working in public relations shared her experience with the Cost of Living during a recent interview. She began her current job towards the end of 2025 and expressed feelings of unfulfillment and a lack of growth opportunities.
Despite her discontent, she has chosen to stay put. She highlighted the prevailing sentiment of job scarcity and the prevailing belief that having any job is better than none, which has discouraged many from seeking new opportunities.
In January 2022, the job-switching rate stood at about 0.82% monthly, but by 2026, this figure had dropped to 0.41%, indicating a significant decline in job transitions, as reported by the Bank of Canada and Statistics Canada.
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Canada’s economy dropped 18,000 jobs in April as unemployment rose to 6-month high
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Canada slipped into a technical recession on an annualized basis as economic growth stalled in 1st quarter
Economic uncertainty and reduced financial incentives from companies are cited as key reasons behind the increase in job hugging, according to labor market analysts.
Jim Stanford, a labor economist and director at the Centre for Future Work in Vancouver, emphasized that the current environment has made people more inclined to hold onto their existing jobs out of fear of the unknown.
Shifting Dynamics
Following the pandemic, there was a surge in job mobility, creating a labor shortage as employees sought new opportunities, noted Mike Shekhtman, senior regional director at Robert Half, a leading employment agency in Canada.
Previously, companies were offering attractive perks such as meditation rooms, flexible work arrangements, and competitive salaries to lure talent, leading to a fluid job market.
However, the landscape has evolved, with Shekhtman highlighting that the promise of substantial salary increases upon job switches is no longer guaranteed in the current market.