Definition: Job insecurity refers to workers' subjective sense that their employment is threatened, whether through actual organisational signals (redundancy processes, contract uncertainty, financial instability) or perceived threats in the absence of explicit information. Both objective and perceived job insecurity are recognised psychosocial hazards. The psychological harm arises not only from actual job loss but from the sustained anticipation of it.
Overview
Job insecurity operates as a chronic stressor. Unlike acute threats that resolve, ongoing uncertainty about employment status activates persistent vigilance and anxiety. Workers in insecure employment conditions have difficulty planning, struggle to invest effort in their work, and experience a diffuse sense of threat that affects sleep, relationships, and cognitive function.
Insecurity can arise from many conditions: active restructuring processes, use of fixed-term contracts, casualisation of previously permanent roles, organisational financial instability, and ambiguous messaging from leaders about the future. Even when no redundancy is planned, leadership communication that generates uncertainty about employment stability creates measurable harm.
The psychosocial risk is also experienced by workers who retain their jobs during a redundancy process. Witnessing the loss of colleagues creates its own form of insecurity and grief, sometimes called survivor syndrome, which affects performance and wellbeing even among those whose roles are secure.
The Commonwealth Code of Practice (Comcare, 2024) explicitly names job insecurity as a hazard, recognising the policy trend toward more precarious employment arrangements as a systemic risk factor.
Why it matters
Job insecurity is associated with elevated rates of anxiety, depression, somatic complaints, and cardiovascular disease in the research literature. It is also associated with presenteeism, which is working while unwell, a behaviour driven by the fear of appearing expendable. The Commonwealth Code of Practice (Comcare, 2024) explicitly names job insecurity as a psychosocial hazard, as does the Model Code of Practice. WorkSafe NZ's 2024 guidance includes job insecurity in its work design hazard category. Precarious employment trends in Australia have prompted regulatory attention to the issue at a systemic level.
Warning signs
Signs this is managed well
- Workers feel confident in the stability of their employment absent specific threats
- Organisational communication about the future is honest and timely
- Redundancy or restructure processes are handled with clear communication and support
- Use of fixed-term or casual contracts is appropriate to the actual business need
- Workers in insecure arrangements are given adequate information and support
Signs this is a risk
- Workers describe feeling unsettled or uncertain about the future of their role
- Vague or incomplete communication about organisational changes fuels rumour
- Extended use of fixed-term contracts for roles that are effectively permanent
- A history of restructures without honest communication has created ambient distrust
- Workers are performing tasks central to the business but on casual or precarious terms
Control measures
- 1Communicate clearly about organisational direction and employment stability where that information exists
- 2Avoid extended periods of ambiguity, especially during restructure processes
- 3Review the use of fixed-term and casual arrangements against actual business need
- 4Provide additional support and communication for workers in insecure arrangements
- 5Train leaders to avoid casual or speculative comments about restructuring that create unnecessary anxiety
- 6Activate wellbeing support proactively during periods when job insecurity is high
Legal context (Australia and New Zealand)
Job insecurity is explicitly named as a psychosocial hazard in both the Australian Model Code of Practice (2022) and the Commonwealth Code of Practice (Comcare, 2024). The Commonwealth Code is particularly notable for listing job insecurity alongside fatigue and intrusive surveillance as new, explicitly named hazards. WorkSafe NZ's 2024 guidance includes job insecurity in its work design hazard category. Organisations are expected to identify whether job insecurity is present in their workforce and implement proportionate controls.
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Regulatory timeline
How this factor has been formalised in Australian and New Zealand workplace health and safety frameworks.
Regulatory timeline
- 2022
Job insecurity named as a psychosocial hazard in the Model Code of Practice: Managing Psychosocial Hazards at Work.
- 2024
Commonwealth Code of Practice (Comcare) explicitly names job insecurity alongside fatigue and intrusive surveillance as a priority psychosocial hazard, reflecting concern about precarious employment trends.
- 2024
WorkSafe NZ guidance includes job insecurity in work design psychosocial hazard category.
Related factors
- Change Management →How organisational change is communicated, managed, and supported.
- Organisational Justice →Whether workers experience the organisation as fair and equitable.
- Work Demands →The volume, pace, and complexity of what is asked of workers.