You’ve been at your new job for a few months now, and it’s not what you expected. Despite being unhappy, the fear of the uncertain economic conditions makes you reluctant to leave.
This scenario is not uncommon in Canada, as reflected in the country’s job data and the experiences of those who joined the workforce post-pandemic, leading to the emergence of a trend known as “job hugging.” This term describes the situation where individuals cling to their current jobs even if they are dissatisfied.
A woman in her 30s working in public relations shared her experience with the Cost of Living during a recent interview about her job that commenced in late 2025. She expressed feelings of unfulfillment, lack of purpose, and a sense of stagnation in terms of career growth opportunities.
Despite her discontent, she has chosen to stay put. The prevailing narrative of scarce job prospects and the advice to be grateful for having a job constantly discourages her from seeking new opportunities.
Recent data from the Bank of Canada and Statistics Canada shows a significant decline in job switches, with only 0.41% of individuals changing jobs monthly in 2026, down from 0.82% in January 2022.
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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
Economists attribute the rise in job hugging to factors such as economic uncertainty and reduced financial incentives offered by companies to attract new talent. The prevailing sentiment is that individuals are holding onto their current positions amidst the unpredictable economic landscape.
According to Jim Stanford, a labor economist and director of the Centre for Future Work in Vancouver, people are inclined to maintain their existing jobs due to the perceived risks associated with seeking new opportunities in the current economic climate.
Shift in Employment Dynamics
Post-pandemic, there was a significant shift where employees had the upper hand in the job market. Many individuals left their jobs during this period, leading to a shortage of skilled labor.
Employers were offering attractive perks such as meditation rooms, flexible work arrangements,
