‘Employment workers’ threaten the American economy

Experts warn that attachment to employment reduces productivity, innovation and limits the circulation of professionals in the market

A silent but significant change is taking place in the United States labor market: fewer and fewer Americans are changing jobs, while signings decrease, creating a scenario of limited mobility and stagnation. The phenomenon, described by experts such as the “Hug your job”reflects the fear of the unknown and has profound implications for workers, companies and the economy as a whole.

Since April 2024, the US economy has lost 1.2 million jobswhile the pace of new signings has fallen to its lowest level in a decade – excluding the retraction caused by the pandemic. The rate of layoffs, traditionally a thermometer of workers’ trust, is in approximately 2%an index rarely seen since 2016.

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“There has been a lot of anxiety about the direction of the economy and the job market,” he said James Atkinsonvice president of innovative leadership at SHRM, a professional group focused on human resources management. “I believe this is part of what keeps people employed.”

The “hug to the job”

The consultancy Korn Ferry coined the term “Hug at work” to describe the situation. In essence, workers are prioritizing security rather than risking a change, even when they are dissatisfied or could earn more in another position.

“During the large wave of layoffs from years ago, many people left their jobs looking for higher wage increases,” he said Matt Bohnsenior partner of Korn Ferry. “Today, salary growth has cooled, awards for change of employment have decreased and many workers fear that their wages do not keep up with the increase in cost of living. So they are clinging to stability in a moment of uncertainty.”

The phenomenon does not only affect employees. For companies, keeping workers unmotivated or prisoners in office for which they have no enthusiasm costs billions of dollars in lost productivitybesides impairing innovation and future development of the workforce. The lack of labor mobility also limits the circulation of talents, reducing opportunities for companies that seek to renew and grow.

Fear versus opportunity

The “hug to the job” reveals a central tension: workers want financial stability and security, but this often comes at the expense of personal and professional growth. Economic uncertainty – fueled by concerns about inflation, monetary policy and an unstable global scenario – makes employees remain in roles that no longer satisfy them.

Experts warn that this posture can mask a widespread disinterest, with lasting consequences. Talent stagnation weakens the competitiveness of companies and limits the ability of the job market to adapt to new demands and technologies.

“The cost to the economy goes beyond salaries,” says Atkinson. “When professionals are in jobs only for safety, there is a direct impact on productivity, innovation and the development of future leadership.”

Reflection of a new job market

The current panorama is strongly contrast with recent years, when high turnover and wage increases were signs of a heated market. Today, the combination of fear of unemployment, moderate salary growth and increased cost of living It makes attachment to stability stronger than ever.

The message for HR companies and leaders is clear: understanding this behavior is essential to engage and motivate teams, rethinking retention strategies and creating environments that stimulate development, even in times of economic uncertainty.

Meanwhile, workers remain “embraced” to their jobs, balancing safety and dissatisfaction – a silent phenomenon that can shape the future of the American labor market for years.

“Hug your job” can hide disinterest

Although low turnover is often celebrated by employers, experts warn that it can mask a silent problem: increasing dishonor among the workers.

A study published in February in American Journal of Preventive Medicine estimated that employees’ disinterest costs an average company of 1,000 people about US $ 5 million per year in loss of productivity. In practice, a disgusting worker can lead to an average annual loss of US$ 4.000while an unmotivated executive can cost up US$ 20.000.

In addition, a LinkedIn survey conducted earlier this year showed that 58% of American professionals feel that their skills are underused in the positions they currently hold.

The problem goes beyond the individual. Uninterested employees, even though they do their tasks, end up transferring part of the workload to colleagues, increasing stress and reducing overall productivity. “Even if people are engaged and striving more, they may need to go beyond to compensate for the disinterest of some teammates,” he explained James Atkinsonfrom SHRM. “So it’s an individual employee problem, but there is also a ripple effect throughout the organization.”

Impacts on economy and growth

The tendency to remain in employment also poses risks to the broader economic scenario. Reduced mobility can Brack salary growth and bring companies to adopt more cautious strategies. In some sectors, the freezing of hiring has replaced natural turnover, creating a labor market that seems stable at first glance, but lacks dynamism and innovation.

However, not all workers are harmed. The Z Generationfor example, it is adaptable and familiar with digital technologies, which can put it in advantage if companies invest in qualification programs and intelligent workforce management strategies, according to Matt Bohnfrom Korn Ferry.

Future perspectives

Experts warn that in the short term, the US economy may face a prolonged period of stagnation if workers’ confidence does not recover and work mobility does not return. The “hug to the job”, although it offers stability, may be creating a workforce less motivated, less innovative and less productivewith impacts that go beyond individual companies and reach the entire economy.

The situation raises issues on how to balance safety and engagement at work – and how organizations can reverse this trend before disinterest becomes a structural problem.

With information from CNBC*