Assigning workloads in a multi-node processing environment using feedback from each node

Techniques are provided for assigning workloads in a multi-node processing environment using resource allocation feedback from each node. One method comprises obtaining feedback from distributed nodes that process workloads, wherein the feedback for a given node indicates (i) an allocation of resources, and (ii) a number of executing workloads. In response to receiving a given workload to be processed, candidate nodes are identified to execute the given workload; and the given workload is assigned to a given candidate node based on an amount of available resources on each candidate node and/or a stability of resource adjustments made for each candidate node. The stability of the resource adjustments made for each candidate node can be evaluated based on a maximum resource adjustment made for a given candidate node relative to a maximum resource adjustment made for each of the candidate nodes.