Page 64 - Azerbaijan State University of Economics

THE JOURNAL OF ECONOMIC SCIENCES: THEORY AND PRACTICE, V.82, # 1, 2025, pp. 52-69

well-being. The sequential chain from social impact to future hope to life satisfaction
further emphasized how social and psychological disruptions interact in complex
ways under conditions of labor market uncertainty.
The full serial mediation pathway—from goal growth through social impact and
future hope—was also significant, suggesting that job insecurity initiates a cascade of
negative psychological and social experiences that jointly erode life satisfaction.
While some isolated pathways involving only goal growth did not achieve statistical
significance, this mediator nonetheless played an important role in activating
downstream effects.
Overall, the results underscore that job insecurity must be understood not solely as an
economic condition but as a deeply social and psychological experience. The effects
of employment precarity reverberate across personal development, social integration,
and future outlook—dimensions critical to subjective well-being.
These findings carry important policy implications. Labor market interventions must
be broadened to include psychosocial support mechanisms alongside conventional
employment programs. Policies should aim to not only reduce unemployment but also
foster personal goal development, strengthen social networks, and promote future
hope. In contexts like Azerbaijan, where formal mental health and social support
systems are still maturing, such integrated approaches are essential for enhancing
resilience and long-term well-being among job-seeking populations.

Conclusion:
This study investigated the relationship between job insecurity and life satisfaction
among unemployed individuals in Azerbaijan, with a particular focus on the
psychological and social mechanisms that mediate this relationship. Using survey data
and Hayes’ PROCESS Macro Model 6, two analytical approaches were applied:
Model 1, which treated job insecurity as a categorical variable, and Model 2, which
modeled both the independent and mediating variables as discrete continuous
variables. Both models yielded consistent and theoretically meaningful results,
offering a nuanced understanding of how employment-related stress influences
subjective well-being.

Key findings:
• Job insecurity significantly reduces life satisfaction, confirming its role as a salient
psychological stressor among unemployed individuals. This negative association
was robust across both models.

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