Australia’s youngest workers are challenging assumptions about job mobility. While Gen Z was once known for rapid role-switching and chasing flexibility, new data shows many are now holding onto their jobs longer. This “job hugging” trend reflects deeper concerns about job security, career longevity, and the impacts of automation. The question is no longer how fast Gen Z will move, but what will convince them to stay.
Job Hugging Trends Take Hold
Job mobility in Australia has dropped from 9.5% in 2022 to 7.7% in 2025, according to recent labour market reports. Gen Z workers are driving this decline, with many choosing stability over experimentation. Analysts suggest concerns about AI disruption and economic uncertainty are key drivers.
Despite a high number of applications on job boards, actual role changes have slowed, proving that interest does not always translate into action.
Pay Rises Influence Return-to-Office Choices
Contrary to stereotypes, Gen Z is pragmatic when it comes to pay and workplace arrangements.
A SEEK survey found that 86% of Gen Z workers would return to the office full-time for a pay rise, compared to only 45% of Baby Boomers. This highlights how financial security now outweighs lifestyle preferences for many younger workers. Employers who adapt compensation strategies to reflect rising costs of living may be better positioned to retain talent.
Hybrid Work is Still Preferred
While fully remote work is declining in popularity, hybrid arrangements remain the top choice for Gen Z. A Hatch report shows that only 12% of young Australians now prefer fully remote roles, down from 23% in 2024. By contrast, 69% favour hybrid models, which provide flexibility alongside connection and structure. For recruiters and employers, this underscores the importance of offering hybrid options to attract and keep younger talent.
Implications for Recruitment and Workforce Strategy
The job hugging trend poses both challenges and opportunities. Employers face longer retention cycles but also gain more time to invest in employee development. Recruitment strategies must shift towards building strong career pathways, demonstrating job security, and reinforcing financial stability. At the same time, offering hybrid arrangements can provide the balance Gen Z seeks between flexibility and connection.
Gen Z job hugging is more than a passing fad. It is a reflection of a changing workforce, shaped by economic pressure, technological disruption, and shifting values.
Employers who respond with fair pay, hybrid flexibility, and strong career development will not only retain younger workers but also build a resilient and committed workforce.
