Job Insecurity in Sri Lanka: How Self-Efficacy Mediates its Effect on Optimism

Abstract

Job insecurity is a significant concern globally and in Sri Lanka. It has been determined to detrimentally affect various job-related factors and the psychological health of individuals. Job insecurity may be a significant stressor that affects the optimism of youth, and optimism is crucial for mental and physical wellbeing. Accordingly, job insecurity’s negative effects may potentially be reduced by self-efficacy by fosteringbeliefs in their abilities despite job uncertainty. Consequently, self-efficacy has been identified as a potential psychological buffer. Nevertheless, empirical studies examining the mediating effect of self-efficacy between job insecurity and optimism are limited. The study aims to investigate the effect of job insecurity on optimism and the mediating role of self-efficacy, addressing the research gap in Sri Lanka. This quantitative study follows a cross-sectional survey design, treating job insecurity as the predictor variable, optimism as the outcome variable, and self-efficacy as the mediator. The final sample size included 164 Sri Lankan young career adults aged 18 to 35 who are currently working, with data collected through convenience sampling. The data was analysed using simple linear regressions and mediation analysis. The results revealed that job insecurity was a significant predictor of both self-efficacy and optimism. Similarly, self-efficacy emerged as a significant predictor of optimism. A partial mediation effect of self-efficacy was observed. These findings highlight the significance of self-efficacy in mediating the relationship between job insecurity and optimism and suggest enhancing self-efficacy as an empowering approach to diminish the adverse impacts of job insecurity.