US Labor Market in ‘Great Freeze’ as Hiring Stalls and Career Mobility Stagnates

The United States labor market is stuck in a deep freeze. Companies are not hiring or firing at normal rates. This creates a stagnant environment for workers and job seekers alike.

This situation, termed the “Great Freeze,” is driven by economic uncertainty and new technologies. According to Bloomberg, mass layoffs and AI advancements are significantly limiting job opportunities across the country.

Job Hugging Becomes the New Corporate Strategy

Businesses are now embracing “job hugging.” This means they are holding onto current employees but are hesitant to create new positions. The strategy is a direct response to volatile economic conditions like potential tariffs.

Data from ZipRecruiter confirms this trend. Employee turnover has plummeted from 177% in 2023 to just 50% in 2025. Both employers and workers are now prioritizing stability over change.

A significant 76% of companies plan to make employee retention a top priority. While hiring for entry-level roles may see a small uptick, overall market movement remains sluggish.

No Quick Thaw Expected for Stalled Job Market

Economists do not foresee a rapid improvement. The conditions creating this freeze are persistent. There is no immediate catalyst to break the cycle.

“We’re only a few months from the end of the year, and there isn’t an immediately obvious reason why the job market would suddenly snap out of the malaise it’s in,” said Daniel Zhao, chief economist at Glassdoor. Firms remain profitable, which reduces the urgency for large layoffs but also for aggressive hiring.

There are, however, faint signals of change. About 63% of companies intend to increase hiring in the coming year. The focus will likely be on entry-level positions that were most affected during the slowdown.

The US labor market’s Great Freeze presents a complex challenge. Workers face fewer options and stalled career paths. The situation underscores a significant shift in corporate America’s approach to its workforce.

Info at your fingertips

What is the ‘Great Freeze’ in the US labor market?

The ‘Great Freeze’ describes a stagnant job market. Companies are not conducting mass layoffs, but they are also not hiring aggressively. This leaves workers with limited mobility and job seekers with fewer options.

What is ‘job hugging’?

‘Job hugging’ is a corporate strategy where employers hold onto their current workforce. They avoid large layoffs but also hire very cautiously. This is often a response to economic uncertainty and high previous turnover rates.

How has employee turnover changed recently?

Employee turnover has dropped dramatically. Data from ZipRecruiter shows it fell from 177% in 2023 to just 50% in 2025. This indicates a major shift towards workforce stability.

Will the labor market improve soon?

Most experts believe a quick improvement is unlikely. The current economic conditions, with stable corporate earnings, provide little incentive for companies to significantly change their hiring or staffing strategies in the immediate future.

What roles are companies most likely to hire for?

Companies are showing the most intent to hire for entry-level positions. These roles were hardest hit during the recent slowdown. About a third of businesses plan to focus on these jobs.