What is Job Hugging?

Job hugging refers to workers staying in their current roles primarily out of fear rather than loyalty or satisfaction. The term gained popularity in 2025 as a buzzword to describe current career anxieties, particularly among workers who feel trapped in positions they find unfulfilling but are too afraid to leave.

The Data: Record Low Resignations

Historic Lows

Singapore’s average annual resignation rate hit 1.3% in 2024 (lowest since records began in 2006)
Further declined to 1.2% in Q1-Q2 2025
Average job tenure increased from 7.3 years (2014) to 8 years (2024)

By Worker Type

PMETs (Professionals, Managers, Executives, Technicians): 0.9% resignation rate
Clerical, sales, service workers: 2.0%
Production, transport, cleaners, laborers: 1.5%

Root Causes: A Perfect Storm

1. Economic Uncertainty

US-China trade war and rising tariffs
No single crisis to blame, but persistent unease
Unclear if/when market will improve

2. Tech Sector Transformation

110,000 tech workers laid off globally in 2025 (down from 152,922 in 2024)
Repeated restructuring and layoffs, especially in:
- SaaS (Software as a Service) companies
- Big Tech (Meta, Amazon, Apple, Netflix, Alphabet)
Singapore becoming a “hub of redundancy” for tech
AI threatening to displace various job functions
Fewer junior roles; greater need for data literacy

3. Structural Market Changes

Growth in PMET roles (which have lower resignation rates naturally)
Longer hiring cycles and more counter-offers
Heavy competition in job market
AI filtering resumes before human review (“black hole” effect)
“Last in, first out” fears during retrenchments

4. Compensation Complexity

Golden handcuffs keeping workers in place:

Biannual performance reviews with bonus opportunities
Shift from cash bonuses to Restricted Stock Units (RSUs)
Vesting periods creating incentive to stay

The Psychology Behind Job Hugging

Loss Aversion

People experience losses more intensely than equivalent gains, making them stick with comfortable (but unfulfilling) jobs rather than risk something worse.

Region-Beta Paradox

Workers in truly awful jobs reach breaking points and quit (finding better opportunities)
Workers in “tolerable but mediocre” jobs stay much longer, missing out on growth

Shifting Values

Move away from hustle culture toward work-life balance
Rise of “lazy girl jobs” concept (well-paying, low-stress roles)
Greater focus on upskilling vs. job-hopping
Terms like “quiet quitting” and “tang ping” (lying flat) gaining traction

Industry-Specific Impacts

Most Affected Sectors

Technology – Repeated layoffs, AI transformation, restructuring
E-commerce – Similar pressures as tech
Professional Services – AI-driven role redefinition

Recruiter Observations

More candidates withdrawing late in hiring process
Increased counter-offers from current employers
Greater caution, especially around stability and leadership trust
Candidates prioritizing these over title or compensation

Hidden Costs

For Individuals

Skills becoming obsolete without career progression
Less competitive vs. job-hopping peers
Reduced fulfillment and engagement
“Quiet disengagement” from work

For Companies

Stagnation and lack of fresh perspectives
Internal echo chambers
Lower innovation
Disengaged workforce despite low turnover

Real-World Example: Mike’s Story

A Singaporean in his 30s at TikTok illustrates the dilemma:

Feels “extremely stretched and disengaged”
Witnesses quarterly layoffs and restructuring
Fears being “first out” as newest hire elsewhere
Trapped by RSU compensation structure
Wants to leave but feels financially irresponsible to do so
Planning for family makes stability crucial
Paradoxically hopes for layoff as “blessing” to force change

Comparison to Past Crises

Previous patterns (2008 crisis, COVID-19):

Clear crisis → resignation dip → quick rebound
“Great resignation” and “revenge hiring” followed

Current situation (2024-2025):

No single identifiable crisis
Two years of slow (not catastrophic) decline
No clear end or rebound in sight
Feels both psychological and structural

Expert Perspectives

What Makes This Different

“The hesitation feels psychological and structural. After repeated layoffs, reorganizations and AI, candidates have re-weighted stability and leadership trust over title or compensation.” – Jung Foo, Pullman Morrison

“What used to be a gold mine is now a race to retrenchment” – Tasha Enright, Algomarketing

“There is no longer a ‘safe’ industry” – Prof. Chua Yeow Hwee, NTU

Future Outlook

Positive Developments

Greater emphasis on upskilling (SkillsFuture impact)
Shift toward lasting job satisfaction over quick progression
More thoughtful career decisions

Concerns

Prolonged market uncertainty
Continued AI disruption
Skills obsolescence for those who stay too long
Generational impact on future workers

Key Takeaway

Job hugging represents a fundamental shift from the “company lifer” era. While both involve long tenure, today’s phenomenon stems from fear and pragmatism rather than loyalty. It reflects a labor market where workers feel they have more to lose by leaving than by staying in unsatisfying roles—a calculus driven by economic uncertainty, technological disruption, and the psychological weight of repeated industry upheavals.

Analysis based on article published November 15, 2025, in The Straits Times

Job Hugging in Singapore: Case Study & Market Outlook

Executive Summary

Singapore’s labor market is experiencing an unprecedented shift characterized by record-low resignation rates and a phenomenon dubbed “job hugging”—where workers remain in positions primarily due to fear rather than satisfaction. This case study examines the current state, contributing factors, and future implications for Singapore’s workforce and economy.

PART I: CASE STUDY

Market Context & Key Metrics

Resignation Rate Trends

2024: 1.3% (historic low since 2006)
Q1-Q2 2025: 1.2% (further decline)
Average job tenure: 8 years (up from 7.3 years in 2014)

Comparative Analysis by Worker Category

Comparative Analysis by Worker Category

Worker Type	Resignation Rate
PMETs	0.009
Clerical/Sales/Service	0.02
Production/Transport/Labor	0.015

Case Profile: “Mike” – Tech Sector Worker

Background

Age: 30s, Singaporean
Company: TikTok
Tenure: 2+ years
Role: Mid-career professional in tech

Situation Analysis

Initial Motivation

Career pivot into high-paying tech role
Opportunity for professional growth
Industry prestige

Current Reality

Quarterly layoffs and restructuring
Extreme work stretch and disengagement
Golden handcuffs: Compensation shifted from cash bonuses to Restricted Stock Units (RSUs)
Vesting periods creating exit barriers

Decision-Making Calculus

STAY factors:
+ RSU vesting periods
+ Biannual performance review bonuses
+ Fear of "last in, first out" at new company
+ Need for financial security (planning family)

LEAVE factors:
+ Severe disengagement
+ Intolerable work environment
+ Quarterly restructuring anxiety
+ Skills stagnation risk

RESULT: Paralyzed by fear, hoping for layoff as "blessing"

Psychological Profile

Loss aversion: Values avoiding potential loss more than gaining better opportunity
Region-beta paradox: Situation tolerable enough to endure, not bad enough to force action
Risk recalibration: Anticipates 2026 downturn, prioritizing security over fulfillment

Sector-Specific Analysis

Technology Sector (Most Affected)

Global Context

2025 (to mid-Nov): 110,000 tech workers laid off globally
2024: 152,922 layoffs
2023: 264,220 layoffs
Trend: Declining but still significant disruption

Singapore-Specific Factors

Regional Hub Dynamics
- Singapore positioning as “hub of redundancy” for tech
- Regional leadership roles harder to secure and maintain
- Cost-cutting prioritizing automation and AI investments
Structural Changes
- Fewer junior-level positions
- Increased data literacy requirements across roles
- Middle management particularly vulnerable
- HR and marketing functions heavily impacted
Industry Transformation
- SaaS business model under pressure
- Big Tech (Meta, Amazon, Apple, Netflix, Alphabet) restructuring
- Shift from headcount growth to efficiency
- AI-driven role redefinition

Recruitment & Hiring Market

Observable Patterns (from recruitment professionals with 13-20 years experience)

Process Changes

Longer decision cycles
Increased counter-offers from current employers
More candidates withdrawing late-stage
“Eleventh hour” pullouts citing retrenchment fears

Candidate Behavior Shifts

Prioritizing stability and leadership trust over compensation
Greater scrutiny of company financial health
Multiple rounds of consideration before accepting
Heightened due diligence on company culture

Market Sentiment

“The hesitation feels psychological and structural. After repeated layoffs, reorganizations and AI, candidates have re-weighted stability and leadership trust over title or compensation.” — Jung Foo, Partner, Pullman Morrison

Structural Market Transformations

1. Economic Composition Shift

PMET workforce growth outpacing non-PMET growth
PMETs naturally have lower turnover rates
Creates statistical downward pressure on overall resignation rates

2. Technology-Driven Disruption

AI Impact on Job Market

Resume screening automation creating “black hole” effect
Candidates feel filtered out before human review
Threatens displacement across multiple job functions
Employers using AI for candidate evaluation
Creates asymmetry: humans vs. algorithms

Application Example

LinkedIn job posting with errors and no description: 100+ applications
Demonstrates desperation and lack of alternatives
Viral on Reddit with 1,000+ upvotes, gloomy commentary

3. Compensation Structure Evolution

Shift from Cash to Equity

Traditional: Cash bonuses, immediate liquidity
Current: RSUs with vesting periods
Impact: Creates multi-year retention mechanism
Effect: “Golden handcuffs” preventing mobility

Cultural & Behavioral Shifts

From Hustle Culture to Preservation Mode

2023: “Lazy Girl Jobs” Trend

TikTok-originated term
White-collar, well-paying, low-stress roles
Rejection of hustle culture
Singaporeans actively seeking such positions

Example sought-after role:

“HR-cum-accounts position with boutique investment firm… $5,000 to sit in empty office… everyone else WFH or out for sales”

Related Concepts

Quiet quitting: Doing minimum required work
Tang ping (lying flat): Chinese term for opting out of rat race
Noted by PM Lawrence Wong (Sept 24, 2024) as concerning trend

Psychological Drivers

1. Loss Aversion

Humans experience losses 2x more intensely than equivalent gains
Workers overweight risk of bad outcome from job change
Underweight potential upside of new opportunity

2. Region-Beta Paradox

Truly awful situations → breaking point → forced change → often better outcomes
Mediocre situations → prolonged endurance → missed opportunities → skills atrophy

3. Safety Recalibration

“There is no longer a ‘safe’ industry” — Prof. Chua Yeow Hwee, NTU

Retrenchments across all levels and specializations
Elimination of traditional “secure” sectors
Heightened anxiety across workforce

Organizational Impact Analysis

For Employers (Negative)

Stagnation Risks

Reduced fresh perspectives and innovation
Internal echo chambers forming
Quiet disengagement despite retention
Lower productivity from unmotivated staff

Positive Retention Misinterpretation

Low turnover may mask underlying problems
Retention from fear ≠ engagement
Potential for sudden mass exodus when market improves

For Employers (Positive)

Better institutional knowledge retention
Lower recruitment and training costs
More experienced workforce
Reduced disruption from turnover

For Individual Workers (Negative)

Skills obsolescence without career progression
Reduced marketability vs. job-hopping peers
Missed opportunities for growth
Psychological toll of unfulfilling work
Career stagnation affecting long-term prospects

For Individual Workers (Positive)

Job security during uncertain times
Opportunity for deep skill development
Relationship building within organization
Predictable income and benefits

PART II: OUTLOOK FOR SINGAPORE

Short-Term Forecast (2025-2026)

Economic Headwinds

Global Factors

US-China trade tensions continuing
Rising tariff environment
Geopolitical uncertainty
Global economic slowdown concerns

Tech Sector Trajectory

Continued but moderating layoffs (declining from 2023 peak)
Focus on AI and automation investment
Efficiency over growth mindset persisting
Singapore’s role as regional cost-optimization center

Labor Market Predictions

Resignation rates likely to remain suppressed through 2025-2026
Job hugging behavior intensifying before any relief
Hiring cycles remaining extended
Counter-offer culture strengthening

Expected Worker Behaviors

Risk-Averse Positioning

Delayed career moves until market clarity emerges
Emphasis on skill acquisition over job hopping
Greater acceptance of lateral moves for stability
Increased interest in public sector roles
Side income streams as hedge against job loss

Generational Divergence

Gen Z/Early career: Less trapped, more willing to experiment
Millennials (30s-40s): Most affected, peak financial responsibilities
Gen X/Late career: More established, less vulnerable but cautious

Medium-Term Outlook (2027-2029)

Potential Scenario A: Market Normalization

Triggers

Resolution of major geopolitical tensions
AI integration stabilizing job market
Economic growth resumption
Clear industry direction emerging

Outcomes

Resignation rates return to 1.8-2.2% range
Pent-up mobility creating “catch-up” job hopping
Recruitment market rebounds
Wage pressure increases

Implications

Companies face retention challenges
Workers with stagnant skills struggle
Wage inflation in high-demand areas
Brain drain risks for Singapore

Potential Scenario B: Prolonged Stagnation

Triggers

Continued geopolitical uncertainty
AI displacement accelerating
No clear economic catalyst
Structural unemployment concerns

Outcomes

Job hugging becomes entrenched behavior
Resignation rates stay below 1.5%
Skills gap widens
Innovation declines

Implications

Economic competitiveness concerns
Talent pipeline problems
Reduced entrepreneurship
Social mobility challenges

Potential Scenario C: Structural Transformation

Triggers

AI fundamentally reshaping work
Gig/contract economy expanding
Traditional employment model disruption
Policy interventions (e.g., universal basic income discussions)

Outcomes

Traditional resignation metrics become less relevant
Portfolio careers becoming norm
Fluid work arrangements
New forms of job security

Implications

Need for policy adaptation
Social safety net redesign
Education system overhaul
Redefinition of career success

Sector-Specific Outlooks

Technology

Near-term: Continued pressure, selective hiring, AI focus Medium-term: Stabilization as AI integration matures, new roles emerge Long-term: Transformation to AI-augmented workforce, smaller teams

Financial Services

Near-term: Conservative hiring, digital transformation focus Medium-term: Recovery dependent on global economic conditions Long-term: Hybrid human-AI operations, specialized roles premium

Healthcare

Near-term: Relative stability, aging population driving demand Medium-term: Growth sector, but automation increasing Long-term: Most resilient to job hugging trends

Professional Services

Near-term: Client caution affecting hiring Medium-term: AI disruption in routine tasks Long-term: High-value advisory work remains human-dominated

Manufacturing & Logistics

Near-term: Automation continuing, steady but slow growth Medium-term: Smart manufacturing creating new skill requirements Long-term: Significant role transformation

Policy & Institutional Responses

Government Initiatives

Current Measures

SkillsFuture programs showing impact
Focus on upskilling over turnover
Support for career transitions
Industry transformation maps

Recommended Enhancements

Career Transition Support
- Subsidized career coaching
- Mid-career internship programs
- Risk-sharing with employers for switchers
Skills Development
- AI literacy programs across sectors
- Micro-credentials for rapid reskilling
- Industry-academia partnerships
Labor Market Flexibility
- Trial employment arrangements
- Portable benefits systems
- Gig worker protections

Corporate Best Practices

For Managing Job Huggers

Engagement Programs
- Regular check-ins on satisfaction
- Career development conversations
- Internal mobility opportunities
- Skills development funding
Retention Strategies
- Differentiate engaged vs. fearful retention
- Address disengagement proactively
- Create psychological safety
- Transparent communication about company health
Future-Proofing
- Cross-functional skill development
- AI collaboration training
- Leadership development at all levels
- Innovation culture despite stability focus

Strategic Recommendations

For Job Seekers

Immediate Actions (2025-2026)

Upskill aggressively in AI, data literacy
Build financial runway (6-12 months expenses)
Develop side projects/portfolio
Network actively despite not job hunting
Document achievements for future moves

Medium-term Positioning (2027-2029)

Cultivate transferable skills over specialized knowledge
Build personal brand and visibility
Consider strategic moves when market stabilizes
Develop T-shaped expertise (broad + deep)
Stay informed on industry transformations

For Employers

Immediate Focus

Diagnose engagement vs. fear-based retention
Invest in genuine development opportunities
Create transparent communication channels
Address burnout and overwork proactively
Prepare for eventual mobility increase

Strategic Imperatives

Build culture that attracts during uncertainty
Differentiate on stability AND growth
Prepare for AI-augmented workforce
Create retention based on value, not fear
Develop succession planning for all levels

Wildcards & Uncertainties

Positive Disruptions

Major technological breakthrough creating new job categories
Singapore policy innovation (e.g., job rotation schemes)
Regional economic boom
Successful AI-human collaboration models

Negative Disruptions

Major economic crisis (worse than 2008)
Accelerated AI displacement exceeding new job creation
Geopolitical shocks affecting Singapore’s hub status
Mass exodus of discouraged talent

Long-Term Implications (2030+)

Labor Market Evolution

Traditional career paths obsolete
Continuous learning as permanent state
Portfolio careers becoming standard
Work-life integration over balance

Singapore’s Competitive Position

Strengths to Leverage

Strong education system adaptable to change
Government capacity for policy innovation
Regional hub status
Multicultural workforce

Vulnerabilities to Address

Risk aversion limiting innovation
Talent retention in competitive global market
Aging population pressures
Cost of living vs. career mobility trade-offs

Social Contract Implications

Expectation of employer responsibility evolving
Government role in career security expanding
Individual vs. collective responsibility debates
Work’s role in identity and purpose shifting

Conclusion

Job hugging represents more than a temporary labor market phenomenon—it signals a fundamental recalibration of risk, reward, and career strategy in Singapore’s workforce. While resignation rates may eventually normalize, the psychological imprint of this period will shape worker expectations and behaviors for years to come.

Key Takeaways:

This is structural, not cyclical: Unlike past crises with clear causes and rebounds, current conditions reflect deep transformation requiring adaptive strategies, not patience.
Fear is rational, but costly: Workers’ risk aversion is understandable given market conditions, but prolonged job hugging carries significant personal and economic costs.
No industry is immune: The elimination of “safe” sectors requires universal adaptability and continuous learning across all fields.
Policy and culture must evolve: Singapore’s continued competitiveness depends on creating safety nets that enable mobility rather than encouraging paralysis.
The future favors adaptability: Long-term success—for individuals, companies, and Singapore—will depend on building resilience and flexibility rather than seeking illusory security.

The job hugging era will eventually end, but the workers and organizations that merely wait it out risk being left behind when mobility resumes. The opportunity lies in using this period of stability to build capabilities, relationships, and strategies that will thrive in the next phase of Singapore’s economic evolution.

Case study compiled from The Straits Times report published November 15, 2025, with analysis and projections developed for strategic planning purposes.