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This month, the global organizational consultancy firm Korn Ferry declared that weve entered a nationwide era of job hugging, a term to describe the trend of workers increasingly holding onto their positions for dear life amidst economic uncertainty, layoffs, and AI disruption. Now, a new report from the Bank of America Institute is shedding fresh light on the trend, showing that workers may be choosing to cling onto their current jobs because job hopping is no longer profitable. A few years ago, job hoppingor moving from company to company in search of better opportunitieswas seen as a popular way to achieve a salary and resume boost. In 2023, a Resume Builder survey of 1,000 Gen Zers and millennials found that 62% percent of respondents had left their jobs because they wanted a higher salary, and 80% of people who left said they got a salary increase. Of the self-proclaimed job hoppers, about a fifth received a boost of $50,000 or more. Today, those tales of ultra-successful transitions between companies feel like a thing of the past. A July report from Arlington, Virginia-based Eagle Hill Consulting showed that the majority of employees plan to stay in their current position for at least the next six months, with the Gen Z employees who once led the job-hopping charge reporting the highest intent to remain where they are. According to the BoA Institute’s new report, there are several good reasons for the cool-down. Pessimism is worse than during the pandemic Job seekers are currently feel pretty pessimistic about the labor market, and for good reason: A recent report from global outplacement and coaching firm Challenger, Gray & Christmas found that through the end of July, U.S.-based employers had announced more than 800,000 job eliminations in 2025, while, per a report from the Bureau of Labor Statistics (BLS), the U.S. economy created just 73,000 new jobs in July. Further, based on the University of Michigans August 15 Consumer Sentiment survey, the percentage of survey respondents expecting unemployment to rise in the next year has hit a 10-year high, surpassing even the early pandemic era. Payoffs for switching jobs have declined Amidst this climate, the data from BoA Institute indicates that job hopping is largely on pause. Although job hopping has increased slightly since the start of 2025, the estimated rate has trended continuously downward since its peak of 26% in 2022. The report adds that those who do job hop are no longer getting a big bump in pay, with job-to-job pay raises having moderated to around 7% in Julymore than 3 percentage points below the 2019 average level. As the current economic uncertainty continues, it appears that job hopping is no longer a reliable way to score a raiseand, for now, those with a job are choosing to hold onto it at all costs.
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E-Commerce
Stephanie Mehta, CEO and chief content officer of Mansueto Ventures, speaks with Amazon Web Services CEO Matt Garman about leadership, AI, and, of course, the cloud. For those of you who are Modern CEO readers, please check it out in your mailbox every Monday morning.
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E-Commerce
There’s no shortage of stories on how AI is coming for your job. Artificial intelligence is the topic we love to hate, yet people, not to mention the media (guilty as charged), can’t stop talking about it. Yet the question most business leaders have is slightly different. They want to know how the AI revolution will affect their bottom line. A new report from Morgan Stanley looks into thatand here’s what it found. How much will companies save? The short answer, according to Morgan Stanley’s report, is that corporate adoption of AI has the capacity to reshape the future of work, saving businesses nearly $1 trillion a year. The report, “AI Adoption and the Future of Work,” which was viewed by Fast Company, suggests S&P 500 companies could accrue annual net benefits totaling some $920 billion a year. The bank looked at potential future states of AI-driven labor impacts and saw benefits from cost reduction, as well as a productivity lift. A good portion of those savings could come from employing fewer people and from natural attrition as tasks are automated and productivity increases. They also found that adopting AI could translate into some $13 trillion to $16 trillion in long-term market value creation potential for those S&P 500 companies. What’s the fine print? The savings won’t come all at once. Morgan Stanley’s analysis shows there will be some up-front costs at the beginning of the rollout, and also the returns won’t come in for a while, likely years. So, how will this affect my job? According to the bank’s report, 90% of jobs will be impacted by AI automation and augmentation to some extentbut that doesn’t mean all those jobs will become obsolete. Which sectors are most exposed? AI could generate pre-tax savings in many industries. Sectors with the highest returns are consumer staples distribution, retail, real estate management, and development and transportation, which could see more than 100% of expected 2026 pretax profits. Meanwhile, the technology hardware and equipment and semiconductor sectors are not expected to save as much.
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E-Commerce
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