Job insecurity, the term has a deep meaning. A meaning which can affect our lives with sudden bad strokes. “ The probability of losing your employment”, which is the most simple explanation I can give to break the term, Job insecurity. Also, we can call this, “ The uncertainty of ability to continue your permanent employment”.

To be real, it can happen to anyone, anytime. The final result depends on the way you react to your workplace challenges.

As because I’m saying, do not ever think that each and every employee are insecure. There is uncertainty but do not want to overthink the outcomes. Basically private sector employees face this insecurity because of some company rules and acts. It is more suitable to be well aware of the company acts, rules, regulations, and unexpected waves to sustain in such types of situations.

As I always say, we are living in a competitive commercial world. To survive in such type of a world, you have to be the hunter, not the prey. As a financial blogger, I would like to give you the necessary knowledge, so you will not get lost.  Some people mess up their career development due to unwanted reasons.

job insecurity.

At the end of this productive discussion, you will know the following things as I discuss briefly.

  1. What is job insecurity, the definition?
  2. What are the reasons to fall into Job insecurity?.
  3. How does Job insecurity affect your financial growth?.
  4. How to deal with Job insecurity?.

Hope to flow our discussion through the above subcategories. You will have the chance to understand and acknowledge yourself on the above facts.

A  small request to do. There are many people who would love to know this type of information for the good sake of their lives. It is you who can take this information for them. Use social buttons, in the corner and at the below end of this page to share these valuable ideas with another person.

Well, let’s hop down to discuss the most valuable parts of our discussion.

01. What is Job insecurity?. The definition.

Job security and Job insecurity, are 2 verbal forms with a tiny difference. But what about the damage job insecurity can do to one’s life. It is huge right?. From both terms, Job insecurity can affect very badly on individuals.


First, let’s see what is this job security?. Job security defines the probability of an individual continuing his or her job. Higher security means a lower tendency to lose a job.

Same way, the opposite is known as job insecurity. If I define, the probability of an individual losing their job profile. There is a direct risk on that. I think you can understand that. As same as above, a job with high insecurity has a higher tendency to loss.

So finally we can come to a conclusion. Any type of job has a minimum risk calculation of 5% on the hand loss. It could change with some facts which we are going to discuss later.

Above I mentioned the simplest and most relevant definition for Job insecurity. Hope you all got it and If anyone asks from you, now you know how to define the term. Share these facts so another person can benefit by absorbing at least a minimum of knowledge.

 02. What are the reasons to fall into Job insecurity?.

There should be definite reasons for someone to fall into such a situation. Knowing reasons means it is easier to avoid the situation. Also knowing reasons means easy handling the situation. Go through the following reasons, know how it can happen, and then try to avoid getting into job insecurity.

* An economic recession.

This can directly affect your employment, your friend’s employment, and many others you wouldn’t know. A recession can fall a dream company apart. This effect can directly hit your career especially if you are low-skilled labor.

If your mother company fails to bear the economic waves, that can hit you as well. Earlier this year, America faced a recession that was not so bad. You have to trust your skills, believe in yourself, and be strong to face such a situation. I wanted to say that, a recession can directly cause job insecurity.

* A new management.

Well, another good reason. But the results are not good. The appointment of a new management group can say hi to job insecurity. New management can be a risk to your job in the ways,

Interest in favorite employees.

Relative appointments.

Employee layoffs on sudden decisions.

Take time to identify existing employee capacities.

Such reasons can increase the Job insecurity rate if you come across a new management crew. These mini reasons occur due to the main reason appointment of new management.

* Layoffs.

Employment layoffs are common from time to time. The layoffs can happen if the company has difficulty finding its way into profits. To sustain the profits they try to execute some job opportunities.

In these situations, there is a risk to the low-skilled employee volume. Low-skilled ones should sharpen their skills to survive a layoff situation. I have an idea. How is that if you can develop special skills in a company? I mean some extra skills to help your company at difficult times. You should make them think twice to kick you off of the company.

In my point of view, Layoffs are the most difficult ones to survive. Job insecurity has major effects in these types of situations. I would like to know your opinions as well. Kindly request you to use the comment section as well.

* A toxic boss plus toxic working place.

This is a common reason. Here you could resign from your duties because of the reason. But it is also an occasion we can see job insecurity. You will reduce your like to work there If your working environment is not comfortable. Also if your boss is very rude here also you will not likely to participate working.

How to deal with a rude boss, this discussion will give you a direction to think more.

Leaving your job means, unknowingly you are creating an environment of job insecurity. It may cause because of your boss, office mates or even because of the working environment. This also has been identified as a very close reason for Job insecurity. As we live with uncertainty you will also like to know how to resign from your job without conflicts.

* Industrial skill waves.

Can cause because by technology. Skills could change with time. We have heard that a technically updated skill wave can come within every 10 years of time. So you have to update your skills to meet the latest skill criteria.

I would like to show you an example here. Suppose you are a typewriter in 2000. With the invention of the computer, old typewriters were not very useful as before. The ones who used old-type writers had to gain computer skills or if not their jobs were insecure. Likewise, you have to update yourself to face the job challengers. You will be interested to read more about How to become a hard-working person at the office.

03. How Job insecurity can affect your financial status?. 

This is what we should be concerned about and worry about. Loss of employment can attack our financial stability in a very bad manner. The later period of losing your job may be like after 2 or 3 months, you will feel the bad smell of firing up your life. You will survive in the first 2 or 3 months because of the availability of savings, investments, or any other financial backup plans. But what you will do after that. I recommend always going forward with a plan B.

Typically, no job means no income right?. especially if you lose your one and only permanent income. What about the below financial problems.

* Not having the ability to pay debt payments.

* Marginal crosses in the family spending.

* Can affect your saving practices.

* Losing the chance to invest some money.

* Not able to maintain emergency funds like medical and etc.

* No money for fuel and transport.

* Family strokes can arise due to financial conflicts.

* Can cause problems for monthly budget planners.

* Have to limit the entertainment expenses.

Likewise, many disadvantages are there on the hand personal finance. It can cause many financial errors. Suppose your spouse is unemployed and you came up with a Job insecurity situation. Most of the time, this can end up with a divorce, if you fail to fix it right away.

Job insecurity can come with prior notice or without prior notice. If it came with prior notice you will have the time to switch to a backup plan. A job plan, a finance plan, or even a mental health plan.

But what if it was quick. No time to think, no time to react, or even no time to plan. In such situations, the chance of getting depressed is high. When all your financial issues start flying into your head, you will not mind switching yourself to the backup plan. That’s why I thought to discuss how to deal with Job insecurity.

04. How to deal with Job insecurity.

The topic to discuss with some more effort. Solutions can prevent you from getting into trouble. “How to deal with it” can definitely strengthen you to face the outcomes of job insecurity.

* Health sustainability.

We all know that health is wealth. We should be healthy before, during, and even after losing our job. One thing is that we do not have money to spend if we get health troubles. So health should be stored within us to face the situations.

Physically and mentally we have to be strong. We should sail the plan B immediately because we have to survive. So try to continue good health as always and face the situation with confidence.

* Demonstrate your values and skills.

It is better if you can do this before losing your job. Try to demand yourself in the company or where ever you work. Skills are there to show, showing skills means you are getting the chance to survive the job insecurity periods.

Make them regret the decisions if they ask for resignation. Try to maintain more skills than regular skills so the management would think twice to get rid of you.

* Always be with a plan B.

Suppose you are talented and skillful but still couldn’t survive job insecurity. Then what?. Here plan B comes to play. Plan B could be any of the below.

* New job opportunity as soon you resign from your current job.

* Saving money for the sake of the future.

*A new business plan to start after losing the job.

* Plans to strengthen family and personal finances.

Likewise, there are many things to consider as a secondary plan when facing job insecurity. So go forward with a plan B.

* Open yourself to the market of opportunities.

You have the right to follow the vacancies in your same field. Ask your friends, follow the advertisements, and advertise your skills to open yourself to the job market. Sometimes we don’t know, how, or when this can happen. So be prepared for what comes next. It is your responsibility to look after yourself.

* Save money.

A most important and definite one to do. You have to save money as a must to do. In these types of situations, till you get better with finance, you can use saved money as an option. But this can do till you find yourself a new job. If the money is enough till finding a new job, no issues with your personal finance are well.


This is the end of our discussion. I think it was very productive and useful as well. I need to know your ideas about the discussion. Leave a comment below.

So job insecurity could happen at any time. We can be prepared as I said above. More than 50% of American people know this while some are not very interested. But you have to consider this because it can cause some financial problems too.

So I end it here. If this was productive share this on your social walls as well. It will be more helpful for me to be motivated. Best of luck.

Reading recommendations – 07 things can happen when you can’t decide on a career.

External resources  –



If I tell you more about Salika Wijesinghe, I was a former General Insurance Analyst, a former customer service associate in a telecommunication network, Former customer service executive in a bank. Now I'm really very happy to share my knowledge with each and every one of you. Also, I represent a kind-hearted world community because I love helping people as well as animals. I hope my ideas are helpful, so you would find it easy to step forward in this life journey.


  1. I was pretty pleased to discover this great site. I want to to thank you for ones time due to this fantastic read!! I definitely appreciated every part of it and I have you book marked to look at new stuff on your web site.

    • Salika Wijesinghe Reply

      Thank you very much. I have some experience about this subject.

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