​"Job hugging" has become one of the defining workplace trends in recent years. It describes professionals who stay in roles they might otherwise consider leaving, not out of satisfaction, but because economic uncertainty has made the unknown feel riskier than the familiar.

It's easy to understand why. New Zealand has faced a significant shift over the past few years. Inflation, rising mortgage rates (from 3.2% to 6.89%), business restructures, liquidations and a rising unemployment rate (from 3.4% in 2022 to 5.3% today) have all contributed to a more cautious employment market. For many people, the question has become less "what's next?" and more "what if the grass isn't greener?"

We've seen this play out directly in New Zealand's legal market. Conversations that once centred on career progression, flexibility and salary have shifted. We're now more likely to hear "I'm actually quite happy where I am," or "I'm waiting until the market improves," or increasingly, "I'm thinking about heading to Australia." But when we dig a little deeper, we often find that many legal and legal support professionals aren't as fulfilled as they sound. They've simply become more risk averse.

The interesting thing is that while many people perceive the legal market as quiet, the data tells a more balanced story. According to the Thomson Reuters Institute's 2025 State of the New Zealand Legal Market, New Zealand law firms returned to profit growth in 2024, with billing rates up 6.4% and average profits up 3.4%. The market has become more measured, but it's also becoming more stable. Firms are still investing in quality talent, they're just being more considered about it than they were during the hiring boom of 2022. As noted in a recent LawNews article by Anand Ranchhod, construction work remains active across front and back end projects, energy law is emerging as New Zealand shifts toward renewable energy, and employment and family law continue to grow as recession-proof practice areas.

A quieter recruitment market isn't the same as a market with no opportunity. Opportunities still exist, but they're more selective. Both employers and candidates are applying more scrutiny to their decisions. That's not stagnation, it's a more deliberate market.

Where job hugging becomes a problem is when the decision to stay is driven by fear rather than genuine career satisfaction. There's nothing wrong with building a long career within one organisation. Long tenure can demonstrate loyalty, deep expertise and strong client relationships. But there's a real difference between staying because you're challenged and valued, and staying because change feels uncomfortable.

The legal profession continues to evolve through technology, shifting client expectations and new areas of specialisation. Professionals who keep seeking new experiences and broadening their commercial understanding tend to be better positioned when opportunities arise, whether that's within their current firm or elsewhere. Staying in a role that no longer stretches you can quietly limit your future options without you even noticing.

One of the most common misconceptions we come across is that talking to a recruiter means you've already decided to leave. That's rarely the case. Many of the professionals we speak with have no immediate intention of moving. They simply want to understand where the market sits, benchmark their remuneration, and make sure the career decisions they're making now will still serve them well down the track.

That's where we believe specialist legal recruiters add real value. At CoLegal, our job isn't to convince people to move for the sake of a placement. It's to give honest, informed advice that helps legal professionals navigate their careers with confidence. Sometimes that conversation confirms that staying put is absolutely the right call. Other times it uncovers something worth exploring.

If job hugging is driven by uncertainty, then the best antidote is usually knowledge. Understanding your value in the market, knowing how your experience compares and being aware of what's available means you can make career decisions from a position of confidence rather than caution.

The goal shouldn't be to avoid change because it feels safer. It should be to make deliberate decisions based on where you actually want your career to go.

At CoLegal, we're here to help with exactly that. Whether you stay or move, we want to make sure it's the right decision for the right reasons.

Because sometimes the biggest career risk isn't making a move. It's convincing yourself that standing still is the safe option.