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Job Insecurity and its Psychological Toll

Stress over job insecurity is something that a lot of people deal with. There are many reasons for this. First, employees are expected to be more skilled than ever because of a more competitive job market. From my experience as a psychologist working in Dubai, workers also have to contend with technology like AI and automated processes. On top of all that, the economy is known to be fickle and can go on a downturn quickly.1 When these stressors are persistent, it can take a psychological toll on the person.

What happens when there is job insecurity?

The link between job insecurity and mental health is not a new concept. In 2008, researchers took a look at the effects of the economic crisis that gripped Europe at the time. They found that “new forms of flexible and marginal employment have emerged resulting in a considerable increase in job insecurity.”2 The study defined job as a social phenomenon and is related to the perception that the job is threatened and can be lost at any time. One interesting observation that came up was that people felt more stressed over the feeling of job insecurity rather than unemployment itself.

It is well-documented that work can have a huge impact on the well-being of a person. There is plenty of evidence that a negative work environment can cause a person to feel physically and mentally unwell. The US Centers for Disease Control and Prevention has linked a toxic work environment with conditions like obesity, diabetes, and heart disease.3 Job insecurity has also led people to experience psychosomatic symptoms, low self-esteem, and anxiety.4

The influence of work in the mental health of person should not be surprising. After all, people spend at least eight hours of the day at work. It is the source of identity and sense of achievement for a lot of people. Employment also has a practical purpose. It pays for food, shelter, and other necessities that affect the quality of life.

What are the signs of job insecurity stress?

The mental health of employees is a crucial issue in the workplace because it has social and economic consequences.

Attendance Issues

Researchers made a connection between mental health and absenteeism when they reviewed the available literature on the topic.5 One explanation for this is that there are some situations when physical disorders can arise from psychological distress. These are called somatoform disorders and they can disrupt the routines people need to do daily.

Personality Changes

Calling in sick or tardiness are obvious signs of stress at the workplace. Some manifestations are more subtle. Stress from job insecurity can also cause changes in behavior and temperament.

Dr. Chia-Huei Wu, a Professor of Organizational Psychology at Leeds University Business School, University of Leeds, UK, led a team of researchers to find out more about the effects of chronic job insecurity on a person’s personality.6 They used the Big Five Personality Traits framework, which measures agreeableness, emotional stability, conscientiousness, extraversion, and openness. They found that constantly worrying about job security had a negative impact on employees’ personalities. Among the signs they took note of are:

  • Employees became more anxious, tense, irritable, and depressed
  • Negative feelings grew so it was difficult to pay attention and build relationships
  • There was less motivation to achieve goals

Cognitive Impairment

It is widely accepted that chronic stress can affect cognitive function. This is because the brain allocates its resources to address the stressful situation. I would put it this way: think of a laptop that has too many programs open. Even if the laptop is working well, it has to do the tasks one at a time. The brain is similar in that it has to prioritize certain tasks because it cannot do everything at the same time.

There is evidence that work stress is associated with lower cognitive abilities. A study in Brazil specifically looked at delayed recall, verbal fluency, and executive function tests in this particular study. They concluded that work-related stress led to lower performance in these areas.7 Other ways that cognitive abilities can be affected by stress are memory difficulties8 and learning new information9.

Decision-making is also affected by stress from work. A 2012 study compared the professional decisions made by those under stress with those who were not under stressful situations. The researchers found out that stressors lowered accuracy and speed in the decision-making10.

A man in a suit stands apart from other people to show job insecurity.

What are the strategies to manage job insecurity stress?

The World Health Organization addressed stress in the workplace by stating that employers and organizations have a role in protecting workers’ mental health.11 They recommend:

  • Training managers to recognize signs of emotional distress and how to respond to them
  • Training workers to be more aware of mental health and reduce the stigma against mental health conditions
  • Set up psychosocial interventions to help manage stress

Mental health in the workplace is a human resource issue. There are some strategies that are known to help workers deal with stressors such as job insecurity. Some of these are employee assistance programs, employee empowerment, and healthy shift scheduling. Employee recognition through rewards and affirmations can also reduce the stress experienced by the staff.12

Managing the stress from job insecurity does not just fall upon management. Individuals should also develop coping mechanisms to help deal with their feelings. Dr. Tracy Brower, a sociologist who writes about workplace happiness, identified ways to improve job security. She suggests having a strong social network, improving work performance, asking for feedback, seeking opportunities for professional growth, and being confident. These are designed to empower individuals and offset the feeling of helplessness at work.

A man in a suit

Conclusion: Job insecurity is a personal and organizational concern

Focus on work stressors, especially job insecurity has increased because of economic issues and changes in the workplace environment. One aspect of job insecurity is perception. A person’s just might not actually in danger. But this does not make its effects any less real. There are many physical and mental effects on a person undergoing it.

Just like other types of stress, there are ways to manage job insecurity. One way is to take an active role in the workplace. This is to create a feeling of control. Aside from individuals, organizations can also take steps to mitigate workplace stress. Policies can be set up to lessen the stigma and to provide support systems. Worrying over job security can make a person feel anxious and demotivated at work. The benefits of addressing these issues go beyond personal well-being. They also extend to the overall health of the company and increase productivity.  

Cited Sources

  1. Yeves, J., Bargsted, M., Cortes, L., Merino, C., and Cavada, G. (2019). Age and perceived employability as moderators of job insecurity and job satisfaction: A moderated moderation model. Front. Psychol. 10:799. doi: 10.3389/fpsyg.2019.00799 ↩︎
  2. Nella D, Panagopoulou E, Galanis N, Montgomery A, Benos A. Consequences of Job Insecurity on the Psychological and Physical Health of Greek Civil Servants. Biomed Res Int. 2015;2015:673623. doi: 10.1155/2015/673623. Epub 2015 Oct 18. PMID: 26557687; PMCID: PMC4628735. ↩︎
  3. Mental Health in the Workplace: Mental Health Disorders and Stress Affect Working-Age Americans. Centers for Disease Control and Prevention. Reviewed April 10, 2019. ↩︎
  4. Burgard S. A., Kalousova L., Seefeldt K. S. Perceived job insecurity and health: the michigan recession and recovery study. Journal of Occupational and Environmental Medicine. 2012;54(9):1101–1106. doi: 10.1097/jom.0b013e3182677dad. ↩︎
  5. de Oliveira C, Saka M, Bone L, Jacobs R. The Role of Mental Health on Workplace Productivity: A Critical Review of the Literature. Appl Health Econ Health Policy. 2023 Mar;21(2):167-193. doi: 10.1007/s40258-022-00761-w. Epub 2022 Nov 15. PMID: 36376610; PMCID: PMC9663290. ↩︎
  6. Wu, C.-H., Wang, Y., Parker, S. K., & Griffin, M. A. (2020). Effects of chronic job insecurity on Big Five personality change.Journal of Applied Psychology, 105(11), 1308–1326. https://doi.org/10.1037/apl0000488 ↩︎
  7. de Souza-Talarico JN, Suemoto CK, Santos IS, Griep RH, Yamaguti STF, Lotufo PA, Bensenõr IJM. Work-related stress and cognitive performance among middle-aged adults: The Brazilian Longitudinal Study of Adult Health (ELSA-Brasil). Stress Health. 2020 Feb;36(1):19-30. doi: 10.1002/smi.2906. Epub 2019 Dec 2. Erratum in: Stress Health. 2020 Dec;36(5):701. doi: 10.1002/smi.3003. PMID: 31721401. ↩︎
  8. Shields GS, Sazma MA, McCullough AM, Yonelinas AP. The effects of acute stress on episodic memory: A meta-analysis and integrative review. Psychol Bull. 2017 Jun;143(6):636-675. doi: 10.1037/bul0000100. Epub 2017 Apr 3. PMID: 28368148; PMCID: PMC5436944. ↩︎
  9. Yaribeygi H, Panahi Y, Sahraei H, Johnston TP, Sahebkar A. The impact of stress on body function: A review. EXCLI J. 2017 Jul 21;16:1057-1072. doi: 10.17179/excli2017-480. PMID: 28900385; PMCID: PMC5579396. ↩︎
  10. Parvaneh F., Fatemeh B., Anahita K.B. (2012) The effect of stress on accuracy and speed of judgment. Procedia – Social and Behavioral Sciences, 32. https://doi.org/10.1016/j.sbspro.2012.01.009. ↩︎
  11. World Health Organization (2024, Sept. 2). Mental Health at Work. https://www.who.int/news-room/fact-sheets/detail/mental-health-at-work ↩︎
  12. Fisher C. Happiness at WorkInternational Journal of Management Reviews. 2010;12(4):384-412. doi:10.1111/j.1468-2370.2009.00270.x ↩︎

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Zita Chriszto | Clinical Psychologist
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