What Is the Definition of Job Insecurity?

Job insecurity is defined as a condition of uncertainty over one’s ability to continue working. Workers may suffer acute job insecurity, such as when a layoff or termination is imminent, or chronic job insecurity, which is a more widespread concern of not being able to keep their positions.

Employees who have spent a major portion of their professional life in less-than-stable employment settings are more likely than others to suffer job instability at some time in their careers. However, there is some good news. Here’s everything you need to know about job instability, including how it affects your career and the whole workforce.

Job Insecurity: What It Is and Examples

A worker’s job is said to be insecure when it is less than steady, or when the worker believes it to be such. A worker’s belief that their ongoing employment is more or less assured is the polar opposite of job security.

It doesn’t really matter whether job insecurity is objective or subjective in certain aspects. Stress, worry, and poor affects on mental and physical health are all genuine consequences of job uncertainty, regardless of whether or not a job loss is imminent.

Uncertainty in one’s job title is an alternative name.

Working in a seasonal sector, for example, would be an example of employment instability. As a fulfillment center associate, you may find it easy to land work before the winter holidays, but you may find yourself out of work after the rush is over; as a swim instructor at an all-inclusive resort during the summer, you may find yourself out of employment after the season ends, unless you work in a tropical location.

Job Insecurities Come in a Variety of Forms

Acute work insecurity differs from chronic job insecurity in that it is more immediate. You are suffering extreme job uncertainty, for example, if you believe you may be laid off in the next weeks. You are feeling chronic job insecurity if your firm is doing well and your employer seems to be content with your performance, but there are no assurances that this will continue to be the case and your industry is prone to layoffs.

If the latter sort of situation seems familiar, it’s because it applies to the vast majority of workers in the United States. Employees in the private sector are deemed to be employed at will in 49 states and the District of Columbia, unless they are covered by an employment contract that specifies otherwise. 1 Employers are only required to establish “good cause” in Montana when dismissing workers, and only after a mandated probationary period has expired.  This implies that, in the majority of states, employees may be fired at any time, for nearly any reason, and without providing any prior warning or explanation.

Employers cannot terminate you for a cause that is deemed discriminatory under federal or state employment law, even if you are employed at will.

Protected characteristics at the federal level include gender, pregnancy, race, religion, national origin, genetic information, and age (40 and older). Your employer is also prohibited from firing you in retaliation for filing a discrimination complaint against you. 

Another sort of work instability is the loss of one’s employment status. Consider the following scenario: your firm is going through a restructure. You keep your employment, but you are moved to a different department or function that is less enjoyable or less aligned with your career objectives. It is possible that the new work may pay less or provide fewer prospects for promotion.

While not as financially unpleasant as losing your work in the near term, job uncertainty may have a negative impact on your overall job satisfaction and engagement.

How Job Insecurity Affects Employees

Job uncertainty may have serious consequences for the physical and emotional wellbeing of employees. Job uncertainty has been linked to heart disease, diabetes, ulcers, migraines, back pain, and sleeplessness, according to research. In addition, employment insecurity increased the likelihood of employees engaging in harmful habits such as smoking. 4

Employees’ health has been found to be harmed even by the thought of job uncertainty, according to research. According to the researchers, this is due to a lack of support and coping mechanisms. In other words, if you are laid off, you may already know what to do next—contact human resources to find out what to do next, inquire about severance or training help, investigate unemployment benefits, and so on. However, if you merely have a suspicion that your job is unstable, you may be unsure of what to do next. 

Jobs with job stability vs jobs with job insecurity

Position security refers to the ability to anticipate continuing work, which is often at the same job or with the same organization. Some businesses and occupations provide an unusually high level of job security in light of the present economic climate. Jobs covered by a collective bargaining agreement or an employment contract fall under this category.

Most other private-sector occupations are insecure to some degree, which means that there is no assurance that they will be retained.

If you work in a job function or sector that is in decline, or for a firm that is experiencing financial difficulties, you may be more vulnerable to job instability. Startups have the potential to be very profitable, but they are also quite insecure since many fail.

Furthermore, certain organizational cultures are structured around short-term performance rather than employee retention. It’s fairly unusual for really successful technology businesses to have median employee tenures of just a year or two, especially in the high-growth sector. 

In addition, there is a rising portion of the workforce for whom job instability may be unavoidable. Instead of working for an employer, freelancers, contractors, and entrepreneurs may be required to work on a project-by-project or on a limited basis for customers. These self-employed employees may not be able to predict where their paychecks will come from the next week or the following month, and, depending on the number of customers, they may not be able to scale up or down their company as required.

How to Deal with Job Instability

Unless you work for the government or in a union, you will almost certainly suffer some amount of job instability throughout your working life. The most effective strategy to deal with it is to admit that it is a fact and make plans in accordance with it. Here are a few pointers:

Be loyal to yourself, rather than to your employer: Even if you like your job, your coworkers, and the objective of your firm, you should be aware that just a small percentage of employees in the United States remain with the same employer for an extended period of time. Maintain an up-to-date résumé, keep your skills current, and keep your eyes and ears peeled for new prospects as well as signals that a layoff may be coming.

Concentrate on more secure opportunities: Can’t stand the thought of being uncertain? Make a change that will help you to be more secure in your profession. Look for positions in the government, union-backed sectors, or in companies that have a reputation for retaining their employees.
Investigate the following in-demand talents in your field: Include these abilities in your toolkit. Having a hot skill or qualification may not help you maintain your current job, but it will almost surely help you find a new one if you ever need or want to change jobs.

Takeaways to Remember
Job insecurity is defined as a worker’s condition of uncertainty regarding their future job, whether that concern is real or imagined.
The vast majority of private-sector workers in the United States are hired at will, which implies that their employers may terminate them for nearly any reason, or for no reason at all, with or without warning.
The likelihood of job security is higher in union positions, government occupations, and other jobs that are protected by an employment contract.
Being loyal to yourself rather than your company, looking for more secure possibilities, and studying and learning in-demand skills are all effective ways to cope with job uncertainty.