The Great Stay: Why Singapore’s Workers Are ‘Job Hugging’ – and What It Means for 2026
Singapore’s job market is experiencing a quiet revolution. It’s not a surge in hiring, but a startling lack of movement. Resignation rates have plummeted to historic lows – a mere 1.2% in the first half of 2025 – and average job tenure is now eight years, up from 7.3 years a decade ago. This isn’t necessarily a sign of unwavering loyalty; it’s a phenomenon increasingly known as “job hugging” – sticking with a job out of fear, not fondness. And it’s a trend poised to reshape the Singaporean workforce, with implications stretching into 2026 and beyond.
Beyond the Buzzword: The Roots of Job Hugging
The term “job hugging” gained traction in 2025, popularized by consulting firms and social media, but the underlying anxieties are far from new. Historically, economic downturns – like the 2008 financial crisis and the Covid-19 pandemic – have always triggered a dip in resignations. However, today’s situation feels different. Unlike previous crises followed by a swift rebound, the current slowdown has lingered, creating a pervasive sense of uncertainty.
Several factors are at play. The composition of Singapore’s economy has shifted, with a growing proportion of PMETs (professionals, managers, executives, and technicians) – a demographic generally less inclined to job-hop. But the deeper issue is a loss of confidence. Repeated restructurings, particularly in the tech sector, and the looming threat of AI-driven job displacement have left many workers feeling vulnerable. As Michelle Koh, Managing Director at The Edge in Asia, notes, candidates are increasingly wary of being “last in, first out” during potential retrenchments.
The Tech Sector: Ground Zero for Job Hugging
The tech industry, once a magnet for ambitious professionals, is now a prime example of the job hugging trend. The rapid growth of the past decade has given way to a “race to retrenchment,” as companies streamline operations and invest in automation. The allure of lucrative opportunities at firms like Meta, Amazon, Apple, Netflix, and Alphabet (often referred to as “Catch”) has diminished, replaced by anxieties over budget freezes and shifting KPIs.
This is reflected in the global tech layoff numbers. While down from peak levels, over 110,000 tech workers have been laid off globally in 2025 (as of mid-November), according to Layoffs.fyi. The scarcity of junior-level roles further exacerbates the problem, leaving those recently hired particularly vulnerable.
The Psychological Toll: Loss Aversion and the ‘Region-Beta Paradox’
Beyond economic anxieties, psychological factors are driving job hugging. NTU economics professor Nattavudh Powdthavee highlights the principle of loss aversion – the tendency to feel the pain of a loss more strongly than the pleasure of an equivalent gain. This makes the perceived risk of leaving a stable, albeit unfulfilling, job outweigh the potential benefits of a new opportunity.
He also introduces the “region-beta paradox.” Those in truly awful jobs are more likely to take the leap and seek something better. But those in merely tolerable situations – the majority – are more inclined to stay put, even if it means sacrificing long-term career growth or personal fulfillment. This creates a cycle of stagnation, where workers remain in roles that don’t fully utilize their skills or align with their aspirations.
The Shifting Compensation Landscape: RSUs and the Golden Handcuffs
The changing nature of compensation is also contributing to job hugging. Bonuses are increasingly tied to Restricted Stock Units (RSUs), which vest over time. While RSUs can be valuable, they create a financial incentive to stay with a company, even if the work environment is deteriorating. As one TikTok worker, “Mike,” explained, the uncertainty of the external job market makes it difficult to justify giving up the potential future value of RSUs.
What This Means for Employers – and Employees
Job hugging isn’t without its downsides for companies. While it can preserve institutional knowledge, it can also lead to stagnation, internal echo chambers, and “quiet disengagement.” Longer decision cycles, more counter-offers, and candidates backing out at the last minute are all symptoms of a risk-averse market. Employers need to proactively address these concerns by fostering a culture of trust, transparency, and continuous learning.
Navigating the New Normal: Strategies for Job Seekers
For those considering a move, the current environment demands a strategic approach. Focus on upskilling, particularly in areas like data literacy and AI, to enhance your marketability. Network actively and build relationships with potential employers. And be prepared to negotiate – not just on salary, but also on job security and opportunities for professional development.
The Future of Work in Singapore: A Focus on Stability and Skills
The trend of job hugging suggests a fundamental shift in priorities. Workers are increasingly valuing stability and leadership trust over rapid career advancement and high salaries. This doesn’t mean ambition is dead; it means that the definition of success is evolving. The Singaporean workforce of the future will likely be characterized by a greater emphasis on lifelong learning, adaptability, and a willingness to prioritize long-term career sustainability over short-term gains. The question isn’t whether this trend will continue, but how companies will adapt to attract and retain talent in a world where the fear of change is often greater than the desire for something new.
What are your predictions for the Singaporean job market in 2026? Share your thoughts in the comments below!
