Fewer Aussies plan to look for a new job in 2026

As confidence in the job market fades and economic uncertainty continues to shape career decisions, new data from LinkedIn shows Australians are increasingly “job hugging” in 2026, with fewer workers planning to look for a new role this year.

Australia’s workforce is heading into 2026 with caution, holding tightly to existing roles as more employees turn to “job hugging” – staying put despite feeling disengaged or ready for their next move.

New LinkedIn research highlights a cooling in job mobility, with only 51 per cent of Australians planning to search for a new role this year, compared with 59 per cent last year.

According to LinkedIn, the slowdown reflects a growing sentiment among Australians that changing jobs now feels “harder and riskier” in the current market.

This marks a sharp contrast to the post-pandemic “Great Resignation”, when workers felt empowered to leave even secure, satisfying roles in pursuit of better pay, greater flexibility, or a stronger sense of purpose.

LinkedIn attributes the shift towards “job hugging” to “caution rather than contentment”, with nearly seven in 10 Australians (69 per cent) saying finding a new job has become harder over the past year due to rising competition.

At the same time, four in five Australians (81 per cent) admit they feel unprepared to job hunt in 2026, while more than a third (36 per cent) say they are unsure how AI is reshaping the hiring process.

Yet while many employees are choosing to stay put for now, others are quietly preparing behind the scenes – and increasingly turning to AI as a source of reassurance in a crowded market.

LinkedIn’s research shows that just 22 per cent of Australians aren’t planning to use AI in their job search, while one in two Australians (50 per cent) indicated that AI tools would make them feel more prepared heading into an interview.

AI is also helping to ease nerves, with 36 per cent saying AI-led interviews would make them less stressful – a figure that rises to 43 per cent among Gen Z.

LinkedIn career expert Brendan Wong explained that the findings reveal a striking reversal of post-pandemic trends, with more Australians feeling unprepared to job hunt and increasingly choosing to “hug” their current roles.

“After the ‘Great Resignation’, we are seeing the opposite behaviour. Australians are job hugging, staying in roles they might have otherwise left because the market feels uncertain and highly competitive,” Wong said.

“When four in five people say they feel unprepared to job hunt, it’s not surprising many are choosing stability over risk. AI can help by giving people the confidence and tools to prepare, even if they are not ready to move just yet.”