A research project by:
ISABELLA KROVVIDI (14)
Job Security
Executive Summary
Definition of Job Security
Job security is the probability that an employee will retain their job in the immediate future.
Job insecurity occurs when employment is threatened by factors such as technological innovation, industrial decline, or other structural challenges.
Importance
A stable workforce ensures higher productivity, consistent quality of work, and employee motivation.
A Robert Walters study shows that 77% of professionals now place greater emphasis on job security than on higher salaries, demonstrating its importance for both workers and employers.
Job insecurity is a global issue with wide-ranging economic consequences, undermining financial stability, increasing inequality, and placing pressure on social systems.
Global Context
In the UK, around 6.1 million workers experience some form of job insecurity, often accompanied by low pay and irregular hours.
Globally, the International Labour Organization (ILO) forecasts an unemployment rate of 5.2% in 2024, with a “jobs gap” of 402 million people seeking work but unable to find employment.
This gap is significantly higher in low-income countries (20.5%) than in high-income countries (8.2%), highlighting international disparities.
Causes of Job Insecurity
The main drivers include offshoring and outsourcing, automation, heightened global competition, and precarious work arrangements such as temporary or contract jobs that offer little stability, benefits, or protection.
Potential Solutions
While AI may replace certain tasks, jobs requiring human skills such as empathy, creativity, and ethical judgement remain secure.
Emerging industries will create new employment opportunities, making adaptability and lifelong learning increasingly important.
Reducing job insecurity requires coordinated efforts, including government policies that protect workers’ rights and promote fair employment practices, as well as employer initiatives that provide secure contracts, upskilling programmes, and clearly defined career progression pathways.
Conclusion
Job security is crucial for a stable workforce and economy. Addressing risks from offshoring, automation, and international competition relies on continuous development of workers’ skills, effective policy-making, and responsible employment practices.
Strengthening these areas will support a workforce that is secure, resilient, and capable of thriving in a rapidly evolving global economy.
Introduction
Job security has become one of the most pressing issues in today’s rapidly changing world of work. As economies evolve, industries adapt, and technology advances, many employees face growing uncertainty about the future of their jobs.
While stable employment has traditionally been linked with financial stability, motivation, and productivity, an increasing number of workers now find themselves in roles that are temporary, at risk of automation, or vulnerable to global competition.
This report explores the concept of job security, why it is important, the factors that contribute to insecurity, and the potential solutions available to both governments and organisations.
By examining current research and global trends, it aims to highlight the challenges workers face and the steps that can be taken to build a more secure and resilient workforce.
What is Job Security?
Job security is the probability that an employee can continue in their current role without the risk of redundancy.
Job insecurity is when an employee is at risk of being let go from their current role. There are two types of job insecurity: acute and chronic.
Acute job insecurity is when a worker believes that they may be let go in the next few weeks
Chronic job insecurity is when an employee is dealing with job instability even though they themselves and their employers are doing well,
High job security means employees can plan for the future and have stable employment.
Low job security/job insecurity means that employees cannot always plan for the future in their workspace and have unstable employment.
Importance of Job Security
If a worker feels they are secure in their job, it can improve their efficiency, help them relax and improve their focus.
A 2024 survey by recruitment firm Robert Walters found that 77% of professionals now consider job security more important than pay, and many employers have reported that candidates frequently raise this topic during job interviews (Robert Walters, 2024).
High job security creates a relaxed atmosphere, enabling employees to concentrate fully on their tasks without unnecessary stress.
It also benefits employers, as companies with a reputation for providing secure employment strengthen their brand and credibility, attract new talent, and foster greater confidence among employees.
Overall, job security is important to companies, employers and employees, as well as the economy.
Why is Job Insecurity an Issue?
Job security has become an increasingly important issue as economies and industries undergo rapid transformation.
Recessions, corporate downsizing, and shifts in consumer demand place many jobs at risk, contributing to widespread uncertainty in the labour market.
Advancements in technology and automation are further destabilising certain roles, particularly in sectors such as retail, manufacturing, and administration.
In addition, the rise of temporary contracts and freelance work often provides limited long-term stability. Such uncertainty can generate stress, reduce motivation, and negatively affect work quality.
For employers, it can contribute to higher staff turnover and reduced morale, emphasising that job security is a significant concern for both employees and organisations.
In the UK, an estimated 6.1 million workers experience some form of job insecurity, often associated with low pay and irregular hours.
On a global scale, the International Labour Organization (ILO) forecasts an unemployment rate of 5.2% in 2024, alongside a “jobs gap” of 402 million people actively seeking employment but unable to secure it. This gap is substantially greater in low-income countries (20.5%) than in high-income countries (8.2%), underscoring international disparities in job stability.
Impacts of Job Insecurity
On Employees
Constant uncertainty about employment can damage mental health and lower overall well-being.
Workers may feel less committed if they believe their role is temporary or under threat.
Fear of redundancy can reduce creativity, risk-taking, and overall productivity.
Irregular or insecure work makes it difficult for employees to plan housing, savings, or family life.
On Employers
Insecure jobs lead to higher staff attrition, increasing recruitment and training costs.
Employees who feel insecure are less likely to invest energy and ideas into the organisation.
Lower morale can affect service standards and output.
On Society and the Economy
Insecurity often affects lower-income workers, widening social and economic divides.
Unstable employment increases reliance on welfare systems and social safety nets.
Reduced consumer confidence and spending weaken demand, hindering growth at national and global levels.
Causes of Job Insecurity
Technological Change and Automation
Advances in artificial intelligence, robotics, and digital systems are replacing many routine and manual roles.
Workers in manufacturing, administration, and retail are particularly vulnerable as technology can often perform these tasks faster and more cheaply.
Globalisation and Outsourcing
Companies often relocate jobs overseas to reduce labour costs or benefit from fewer regulations.
This trend makes jobs in high-income countries less secure, while also creating instability for workers in low-income countries where demand can shift quickly.
Economic Instability
Recessions, financial crises, and sudden downturns in demand often lead to company downsizing, redundancies, or the closure of entire industries.
In uncertain economies, businesses may also rely more heavily on temporary contracts rather than offering stable employment.
Precarious Work Arrangements
The rise of short-term contracts and part-time work means that many employees lack long-term stability.
These arrangements often come without benefits such as pensions, healthcare, or paid leave, increasing insecurity for workers.
Industry Decline
Sectors such as coal mining, traditional retail, and certain manufacturing industries are in long-term decline.
Employees in these areas face uncertainty not only from their current employer but from the shrinking number of opportunities in their field.
Possible Solutions
Government policies
Governments can play a crucial role in reducing job insecurity by introducing policies that protect workers’ rights and encourage fair employment practices.
This includes enforcing minimum wage laws, regulating zero-hour contracts, and ensuring that employees receive adequate benefits and protections.
Strong labour regulations help create more stable working conditions, especially in vulnerable sectors.
Education and upskilling.
Investment in education and lifelong learning is essential for a secure workforce. As industries change, workers need opportunities to retrain and develop new skills to remain employable.
Programmes that focus on digital literacy, problem-solving, and adaptability prepare employees to transition into emerging industries and reduce the risk of unemployment.
Employer initiatives
Employers can strengthen job security by offering permanent contracts, clear career progression pathways, and opportunities for professional development.
Transparent communication about company changes also helps build trust, while investing in employee wellbeing encourages loyalty and reduces turnover. Organisations that support their workforce in this way benefit from improved productivity and a stronger reputation.
Balancing technology and human roles
Although automation and artificial intelligence are replacing certain tasks, they also create new opportunities.
Employers should focus on redesigning roles so that machines handle repetitive functions while people focus on work that requires empathy, creativity, and judgement.
By integrating technology responsibly, companies can protect jobs while improving efficiency.
International cooperation
Since job insecurity is a global issue, international organisations such as the International Labour Organization (ILO) can support countries by setting labour standards, promoting fair trade, and addressing inequalities between high-income and low-income nations.
Greater cooperation can ensure that workers worldwide have access to secure employment opportunities, reducing the risks caused by global competition.
Conclusion
To conclude, job security is an important issue that affects both employees and employers. While globalisation, automation, and unstable work arrangements continue to create challenges, solutions exist.
Stronger government policies, fair employer practices, and investment in skills can all reduce job insecurity. By addressing these areas, societies can build a workforce that is more stable, productive, and able to adapt to change.
References
Richardson, J. (2023). Precarious pay and uncertain hours: insecure work in the UK Labour Market. | Living Wage Foundation. [online] www.livingwage.org.uk. Available at: https://www.livingwage.org.uk/precarious-pay-and-uncertain-hours-insecure-work-uk-labour-market
Herrity, J. (2023). How To Increase Job Security. [online] Indeed Career Guide. Available at: https://www.indeed.com/career-advice/career-development/job-security
Mondo Insights (n.d.). The Future of Work: How to Offset AI Job Automation. [online] Mondo Staffing Agency. Available at: https://mondo.com/insights/how-to-offset-ai-job-automation/
Worldref (2023). The impact of globalisation on job security and job stability. [online] Medium. Available at: https://worldref.medium.com/the-impact-of-globalisation-on-job-security-and-job-stability-cfcc132e6573