Page 53 - Azerbaijan State University of Economics

Shaig E.Kazimov: More Than Just Unemployment: How the Fear Of Not Finding A Job Shapes Life
Satisfaction In Azerbaijan

INTRODUCTION
Problem overview: In recent years, the concept of job insecurity has attracted
growing attention across multiple disciplines, especially in the fields of labor
economics, psychology, and social policy. Traditionally, unemployment research has
focused on the economic consequences of job loss; however, increasing evidence
suggests that the fear of losing employment or the inability to secure stable work—
even in the absence of actual unemployment—can exert profound effects on
individual well-being. This paper explores how subjective job insecurity influences
life satisfaction, with a particular emphasis on the psychological and social
mechanisms underlying this relationship.
Azerbaijan, like many middle-income countries undergoing labor market transition,
has made great strides in providing stable, formal employment opportunities, but it
still faces persistent structural challenges in this area. The levels of informal
employment, unemployment, and the mismatch between education and labor market
needs that has emerged over time contribute to widespread insecurity, especially
among young people and recent graduates. However, beyond macroeconomic
dimensions, it remains understudied how psychological fear of unemployment shapes
people’s overall perceptions of quality of life in such contexts. Employment in
Azerbaijan is predominantly youth-driven and urban-centric, with over 78% of digital
consumers being employed—mainly in office jobs—highlighting a growing digital
engagement among working individuals but also reflecting limitations in digital
commerce infrastructure for broader employment stimulation (K. Fadanı, 2023).
The present study seeks to fill this gap by investigating the relationship between job
insecurity and life satisfaction using nationally collected survey data. We build on the
assumption that this relationship is not linear or direct, but mediated through three key
psychosocial dimensions: (1) personal goal growth—how job insecurity affects an
individual's developmental outlook, (2) social impact—the extent to which social
relationships are perceived to be affected by unemployment, and (3) future hope—
beliefs regarding whether employment will enhance life satisfaction. To this end, we
apply Hayes' PROCESS Model 6, which enables the testing of a serial mediation
framework that captures the complexity of these interrelated factors.
By focusing on subjective job insecurity in Azerbaijan, this study contributes to a
growing body of literature that reframes unemployment not just as a labor market
outcome, but as a multidimensional social and psychological experience. The results
provide insights for both academic inquiry and practical policymaking in employment
and mental health services.
Insights from Azerbaijan: The set of graphs illustrates (Figure 1) Azerbaijan’s
economic structural composition and growth from 2000 to 2024, highlighting the

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