Meanwhile, Nike axed 1,400 jobs after a brutal sales drop: “The latest layoffs — which are understood to fall heavily on its technology division — come as the sportswear behemoth pushes ahead with a major overhaul aimed at sharpening its competitive edge.”

Plus, many governments cut jobs in 2025, and the cuts are continuing in 2026 across the country.

WHAT’S CHANGED?

For more than a decade, technology teams have struggled to attract and retain top talent, especially in areas such as cybersecurity. Panels at tech conferences and cyber summits nationwide have consistently raised this challenge as one of the top cultural issues that CxOs in state and local governments face. In some situations, leaving vital positions unfilled has not been uncommon.

But currently, with more tech layoffs announced almost weekly, most government leaders have more good applicants than jobs to offer. Recent developments, especially over the past nine months, have changed this “attract/retain talent” paradigm. Consider these media headlines:

CNBC: ‘Job hugging’ has replaced job-hopping, consultants say, as workers cling to current roles — “The so-called great resignation has become the ‘great stay.’ But experts say workers aren’t just staying — they’re ‘job hugging.’”

Benzinga: The Great Standstill: American Workers Stay Put As Job Switching Appetite Hits Five-Year Low Amid Uncertainty — “Job satisfaction has fallen to a record low in the United States, according to the New York Federal Reserve’s SCE Labor Market Survey released on Tuesday, with workers reporting the weakest appetite for switching employers since 2021.

“Those days are long gone. Now ADP reports that increase has fallen below 2%. Some are calling this phase of the labor market The Great Stay.”

Economist Impact: America’s workforce is frozen by economic anxiety — “The most striking takeaway is that the average American worker now expects to delay retirement by nearly four years due to economic volatility. For lower-income workers, that gap jumps to six years. Even for Gen Z, many of whom have only just entered the workforce, retirement insecurity is setting in, with younger workers already expecting a five year delay.

Key findings include:

• Safety over salary: 62% of workers now prioritize long-term job security over better pay or benefits elsewhere.
• Mobility stalled: 30% have entirely abandoned job searches in the last five years.
• Raiding tomorrow to stay afloat today: 35% have taken hardship withdrawals from retirement accounts to cover current costs. 30% have also cut back on retirement savings.
• Life on pause: Three quarters have postponed buying a home or car, with millennials most affected (82%). One in four have postponed having children.
• The sector split: Financial services workers are bracing for the longest retirement delay (5.1 years), while government employees expect the shortest (2.9 years). ”

WHAT’S CAUSING THIS TREND?

There are several factors contributing to these trends. Here are a few other stories to consider:

eWeek: AI Is Exposing a Skills Gap in Cybersecurity Hiring — “Artificial intelligence is rapidly transforming cybersecurity roles, but not in the way many expected.  Rather than just eliminating jobs, AI is redefining how cybersecurity professionals work, shifting the focus from manual task execution to higher-level decision-making and analysis. But it’s also exposing gaps in organizational hiring. The work of security professionals ‘becomes less about processing and more about applying strong judgment, logic, and reasoning,’ Maruf Ahmed, CEO of Dexian, said in an email to eSecurityPlanet.”

Pew Research: Federal workforce shrank 10% in Trump’s first year back in office — “The federal workforce shrank by 10.3% in 2025, or a net of nearly 238,000 workers, according to a Pew Research Center analysis of recently published government data.

“A total of 348,219 people quit, retired, were laid off or otherwise left federal employment last year — an 80.8% increase from 2024. At the same time, 116,912 people started working for the federal government – a 55.6% decrease from the year before.”

Washington State Standard: An icy reception for Gov. Bob Ferguson’s proposed budget cuts — “Advocates for schools, public universities, and climate programs are among those unhappy with the raft of cuts the governor relies on to close a $2.3 billion shortfall.”

Government Technology: No Retirement? No Problem: Rethinking Workforce Planning — “For decades, governments nationwide have predicted a coming tidal wave of retirements will cripple critical government services. But recent surveys say otherwise.” 
 
Bizwomen: Women face deeper economic concern as ‘Great Stay’ reshapes workforce — “As the U.S. enters 2026, American workers — especially women — are retreating from risk and prioritizing stability over advancement, reflecting a workforce shaped more by caution than ambition.

“More than half of women (55.4%) believe the labor market will worsen in 2026 compared to 42.7% of men, a nearly 13-point pessimism gap. Women also are substantially more likely to worry about a recession, with 42.5% saying they are very concerned compared to 35.9% of men.”

FINAL THOUGHTS