The links between job insecurity, financial well‐being and financial stress: A moderated mediation model

Abstract

This study proposed a nuanced approach to the association between job insecurity and financial stress by examining whether financial well‐being mediates the established association. In addition, we examined whether the association between the job insecurity and financial stress, through financial well‐being, is moderated by income. For this study, we conducted a path analysis using 1,145 survey respondents. Results revealed a significant relationship between the job insecurity and financial stress and a partial mediation effect of financial well‐being. Moreover, the indirect effect of job insecurity on financial stress through financial well‐being was moderated by income. Although people who have higher financial well‐being were more likely to have lower financial stress, this relationship varied by income such that it was stronger for higher income groups than for lower income groups. Our findings provide insights into the way job insecurity and financial well‐being influence financial stress. This study will help the researchers and practitioners develop more effective and adaptive intervention programmes and resources for individuals and families. Implications for practice and directions for future research are discussed.

Impact of Job Insecurity due to COVID-19 on the Psychological Wellbeing and Resiliency of Food Delivery Personnel

“…Researchers have realized that job insecurity has increased stress among workers regarding their health as well as their lives (Soelton, Amaelia & Prasetyo, 2020). Job insecurity may also pose financial stress among employees (Choi, Heo, Cho, & Lee, 2020). According to some experts (Mukhtar, 2020;Korman and Mujtaba, 2020), the COVID-19 outbreak has created numerous mental health issues in Asian countries like Pakistan.…”

“…Hence, it is important to highlight each employee's emotional reactions in response to job insecurity due to COVID-19 to provide some practical solutions to overcome their stress. ISSN 2162-3058 2021 Financial stress amongst employees may make job insecurity a more agonizing experience, which in return intensifies financial stress (Choi, Heo, Cho, & Lee, 2020). Huge unemployment persists in Pakistan (Ahmed, 2020), which may further trigger job insecurity perceptions in the COVID-19 pandemic.…”

The Effects of Job Insecurity on Employees’ Financial Well-Being and Work Satisfaction Among Chinese Pink-Collar Workers

“…Based on responses from more than 7,700 households and 19,000 family members in Italy, Giannetti et al (2014) reported that job insecurity could lead to financial distress (or stress), which was more pronounced for those people who were employed on a parttime basis. The relationship between job insecurity and financial stress was found to be partially mediated by FWB (Choi et al, 2020). Perceived job insecurity refers to an individual's perception of the threat of losing his or her job (Choi et al, 2020;De Cuyper & De Witte, 2006;Haynie et al, 2016).…”

“…The relationship between job insecurity and financial stress was found to be partially mediated by FWB (Choi et al, 2020). Perceived job insecurity refers to an individual's perception of the threat of losing his or her job (Choi et al, 2020;De Cuyper & De Witte, 2006;Haynie et al, 2016). Perceived job insecurity can be influenced by personal factors such as gender, age, education level, and personality traits and macroeconomic factors such as unemployment rate, consumer price index, gross domestic product (GDP), and government expenditures.…”

“…Thus, employees face enormous pressure due to the tough working and living environment and the associations among job insecurity, financial wellbeing (FWB), financial stress, and people's happiness cause great concern for individuals, families, organizations, and society (Choi et al, 2020;Cotton, 2017;Daly et al, 2019;Halvorsen, 2016;Lebert & Antal, 2016;Rajani et al, 2016;Weller, 2012). A survey in the United States showed that respondents in average had a slightly low level of job insecurity and financial stress, and an appropriate FWB in 2017 (Choi et al, 2020). In Australia, 32.8% of a survey's respondents indicated that they worked in jobs with low security (Daly et al, 2019).…”