In a surprising trend, annual wage growth for workers staying in their current roles is outpacing those who switch jobs. This reversal, seen since February, indicates a weak labor market. While overall job market data remains strong, job hugging is replacing job hopping amid lower bargaining power for workers.

As job openings decrease and hiring slows, workers are losing bargaining power in the labor market. The quits rate has declined sharply, leading to a depressed labor market where workers are less likely to leave for better opportunities. This trend is especially impacting long-term unemployed individuals, who may be willing to accept lower wages.

While switching jobs has historically been the best way to improve wages, the current frozen labor market limits this option. Job seekers are advised to network creatively, consider internal job placements, and focus on upskilling to enhance their chances of landing a job in a challenging hiring market.

Read more at CNBC: Wage growth now favors job stayers over job switchers