AI hiring fears fuel ‘job-hugging’ trend in Australia: LinkedIn
CANBERRA, AUSTRALIA — A new study reveals that Australian workers are increasingly choosing to stay in their current roles—a trend dubbed “job-hugging“—driven by economic uncertainty and apprehension about the use of artificial intelligence in recruitment.
Research from professional network LinkedIn indicates that this shift could significantly impact the number of roles employers advertise in 2026 as mobility slows. The study was based on a survey of 2,001 adult Australians, commissioned by LinkedIn and conducted by the research firm Censuswide.
“It’s definitely replaced what we saw a year or two ago when there was quiet quitting, where people were doing the bare minimum,” Brendan Wong, LinkedIn career expert, told the Australian Associated Press.
Economic uncertainty and AI fears slow job moves
The data reveal a distinct decrease in workforce mobility, which is directly linked to perceived job-market challenges and technological disruption.
SmartCompany reports that 67% indicated it was more difficult to employ in the past year, which made the atmosphere risk-averse, and polled 2 out of 3 respondents.
The result: 51% of the workers had a new job in 2026, according to their plans, which was almost half of 59% in 2025, a promising indicator that the great resignation mindset was being cleared away.
This retreat is characterized by “job-hugging,” in which employees prioritize stability over satisfaction or advancement. Wong notes, “Now, because of the way the job market is, people prefer stability, so they’re retaining their jobs, not because they particularly like them.”
The collective apprehension is suppressing natural job-market churn, as four in five workers feel unprepared to seek a new position, opting instead to remain in familiar roles amid economic headwinds.
AI in hiring worries job seekers, but also offers help
Among the primary causes of the shortage of applications will be insufficient visibility and the widespread use of AI in the hiring process, which will disadvantage potential employees.
According to research, more than a third of employees do not know where AI is used in the recruitment process, leading to a lack of awareness that breeds distrust and reluctance.
Wong explained that AI has become a major part of resume assessment and candidate interviews. This shift can feel “confronting” and lead applicants to believe, “AI is potentially the reason why they may not get to a hiring manager.”
However, the technology also presents a potential solution to the very anxiety it creates. Wong recommends that AI, as a digital job coach, be used to make the process less mystical and to provide more prepared candidates.
By using these tools to ask difficult questions and practice answering them appropriately, job seekers can feel confident, and AI can become their training ally in the rapidly changing employment environment rather than a perceived barrier.
This trend of AI-driven job-hugging has created a precarious standoff, where workforce stagnation now pressures employers to address employee retention and demystify automated recruitment simultaneously, ultimately positioning AI as both the catalyst for and potential solution to the coming talent freeze.
