Page 63 - 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

This finding, while counterintuitive, may point to the presence of psychological
resilience or compensatory mechanisms among certain individuals. In particular,
individuals who maintain optimism or adaptability in the face of job-related stress
might derive a sense of agency or meaning that offsets the adverse psychological
impacts, at least temporarily. Such a dynamic warrants further investigation,
potentially through moderated mediation or subgroup analysis.
Turning to the indirect effects, several key pathways emerged as statistically
significant. First, job insecurity negatively influenced individuals' perceptions of their
social relationships, which in turn predicted lower life satisfaction. This pathway
highlights the social cost of economic vulnerability, wherein stress related to potential
unemployment erodes social engagement, leading to reduced subjective well-being.
Second, the pathway from job insecurity to life satisfaction through future hope was
also significant. This indicates that individuals who feel insecure about their
employment are less likely to believe that future employment will meaningfully
enhance their happiness, and this diminished sense of hope contributes to lower life
satisfaction. This effect emphasizes the critical role of future orientation in
maintaining well-being under conditions of insecurity.

Discussion:
The findings from both model specifications provide robust evidence for the negative
impact of job insecurity on life satisfaction, as well as the importance of psychosocial
mediators in explaining this relationship. Consistent with existing literature, job
insecurity emerged as a strong predictor of reduced subjective well-being. The
strength of the total effect and the attenuation of the direct effect upon introducing
mediators provide strong support for a full mediation model, particularly when job
insecurity is treated as a continuous construct.
One of the most noteworthy observations is the counterintuitive positive direct effect
of job insecurity on life satisfaction in the categorical model. While surprising, this
may be attributable to resilience factors among certain individuals who, despite
reporting job insecurity, still maintain a sense of optimism or agency. Cultural
attitudes toward work, family support structures, or identity-based adaptation
mechanisms may account for this anomaly and should be explored in future research
using moderated mediation or subgroup analysis. The strongest and most consistent
mediation pathway was through future hope. Job insecurity substantially reduced
individuals’ belief that employment would improve their well-being, and this
diminished hope significantly predicted lower life satisfaction. This highlights the
importance of future orientation as a critical psychological mechanism. Additionally,
social impact was an important intermediary, as job insecurity was associated with
perceived deterioration in social relationships, which in turn was linked to reduced

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