Job Insecurity and Psychological Wellbeing: Is it Necessary to Foster Employee Performance

Trends 2022 report warns of a slow and uncertain recovery, as the pandemic continues to have a significant impact on global labor markets. Layoffs treat experienced by the blue-collar employee in hospitality industries in Indonesia. This study aims to examine the relationship between job insecurity and psychological wellbeing on employee performance. The sample of the study was 289 blue-collar employees in Surabaya Indonesia, recruited through simple random sampling, from October through the end of November 2022. The result show that job insecurity was positive and significant related to employee performance (β =0 .213, p = 0.033). Job insecurity was indicated negative and significant to psychological wellbeing (β = – 0.421, p=0,001). Psychological wellbeing was indicated negative and significant to employee performance (β = – 0.253, p=0,004). This study provides prospective insights to management, that mental health is a crucial factor to performance employee to contribution organizational performance.