ABSTRACT
This study examines the psychological and social pathways through which perceived job insecurity affects life satisfaction among unemployed individuals in Azerbaijan. Drawing on nationally representative survey data, the analysis applies Hayes’ PROCESS Macro Model 6 to test a serial mediation framework involving three mediators: goal growth (perceived impact of unemployment on personal development), social impact (changes in social relationships), and future hope (expectations regarding the role of employment in enhancing well-being). A total of 643 valid responses were analyzed using bootstrapped estimates to evaluate both direct and indirect effects. Results indicate a significant negative total effect of job insecurity on life satisfaction, supporting the premise that subjective fear about one’s employment prospects exerts a deleterious influence on overall well-being. While the direct effect remained unexpectedly positive after accounting for mediators, significant indirect effects were observed through social impact, future hope, and the full serial pathway encompassing all three mediators. The findings suggest that job insecurity undermines life satisfaction primarily by reducing individual’s perceived personal growth, weakening social ties, and eroding future-oriented optimism. The study highlights the multidimensional nature of unemployment-related distress, revealing that the consequences of job insecurity extend beyond economic deprivation to include psychosocial disruptions. These results underscore the need for labor market policies that integrate employment services with psychosocial support mechanisms. Interventions should aim not only to reduce job insecurity but also to promote personal development, strengthen social networks, and foster hope among job-seeking populations. By elucidating the complex mechanisms linking labor market experiences to subjective well-being, this research contributes to a more holistic understanding of unemployment’s societal impacts.

Keywords: Job insecurity, life satisfaction, unemployment, social impact, psychosocial well-being
JEL classification: J01, J08, J16, J64

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