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‘Job Hugging’ Defines the U.S. Labor Market as Quit Rate Hovers Near Multi-Year Lows

Analysts warn the lull could flip if hiring rebounds.

Overview

  • Government data show voluntary quits fell below 2% in September 2024 and stayed near that level through July 2025, resulting in roughly one million fewer monthly resignations than at the pandemic peak.
  • Eagle Hill’s 2025 Employee Retention Index indicates high retention is likely to persist over the next six months.
  • Surveys from WTW and others cite cost pressures, a softer job market, global uncertainty and AI-related job-security fears as key reasons workers stay put, alongside satisfaction with pay, benefits and flexible work.
  • Korn Ferry says reduced churn limits entry opportunities and can compress pay for jobseekers, while Glassdoor reports 65% of professionals feel stuck and 39% maintain a side hustle.
  • Experts urge employers to invest in internal development and performance management and to set pragmatic retention targets to guard against stagnation and prepare for a possible snapback in quits.