Page 52 - Azerbaijan State University of Economics

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

MORE THAN JUST UNEMPLOYMENT: HOW THE FEAR OF NOT
FINDING A JOB SHAPES LIFE SATISFACTION IN AZERBAIJAN

Shaig E.Kazimov
National Observatory on Labor Market and Social Protection Affairs, Azerbaijan
State University of Economics (UNEC), E-mail: [email protected];
ORCID ID: https:/ /orcid.org/0009-0004-2200-2127

https://doi.org/10.30546/jestp.2025.82.01.061

Received: December 10, 2024; accepted May 20, 2025; published online July 31, 2025

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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