A significant shift is underway in Australia’s employment landscape as economic apprehensions and technological advancements reshape career mobility. According to recent LinkedIn research surveying 2,000 individuals, 59% of Australian professionals intend to remain in their current positions throughout 2026, signaling the emergence of a phenomenon termed ‘job hugging’.
The comprehensive study reveals that economic instability represents the primary factor driving this employment conservatism, with approximately 70% of respondents acknowledging intensified competition within the job market. Notably, four out of five Australian workers feel inadequately prepared to pursue new employment opportunities, while one-third express specific concerns regarding artificial intelligence’s evolving role in recruitment processes.
LinkedIn career specialist Brendan Wong observes that Australia’s workforce has transitioned from the ‘great resignation’ era to a period of professional retention. ‘The employment landscape has become increasingly competitive with fewer available positions,’ Wong explained. ‘Concurrently, artificial intelligence is fundamentally reshaping hiring practices and skill requirements.’
This trend presents unique challenges for employers, as professionals may maintain positions despite dissatisfaction. Wong emphasizes that organizations must address underlying retention factors through upskilling initiatives and internal mobility programs to maintain workforce engagement and productivity.
The research further indicates AI’s growing influence on employment criteria, with organizations increasingly prioritizing technical proficiency over traditional experience. ‘Artificial intelligence has transitioned from specialized advantage to mainstream necessity,’ Wong noted. ‘Professionals seeking career advancement should develop AI competencies while simultaneously enhancing human-exclusive skills including creative problem-solving, interpersonal communication, and adaptive thinking.’
Despite prevailing anxieties, the report identifies several expanding professional sectors including AI engineering, artificial intelligence management, and chief risk oversight. Positions supporting infrastructure development and energy transition maintain strong demand, alongside human-centered roles in mental health services and organizational development.