Job insecurity takes psychological toll on South African workers

The anxiety behind the payslip: SA workers confront job insecurity

With unemployment reaching 8.5 million, fears of retrenchment are weighing on South African workers, raising concerns about the hidden mental health cost of the country’s jobs crisis.

As the country marks Mental Health Awareness Month in October, economic uncertainty is putting pressure on employees facing rising living costs and the possibility of losing their salaries, financial security and professional identity.

Statistics South Africa’s latest Quarterly Labour Force Survey shows that the number of unemployed people increased by 345 000 between the first and second quarters of 2026, reaching 8.5 million. Employment fell by 16 000 to 16.7 million, while the official unemployment rate rose from 32.7% to 33.6%.

Job insecurity fuels anxiety among workers

Behind the figures is a growing but often overlooked toll of anxiety among workers who fear losing their jobs.

Research by the South African Depression and Anxiety Group (SADAG) found that 38% of employees surveyed feared losing their jobs, while 75% said they continued thinking about work outside working hours.

The findings, drawn from a survey of 963 respondents conducted between August and September 2024, also showed that 52% had been diagnosed with a mental health condition. Depression, stress, generalised anxiety disorder and burnout featured among the conditions reported.

Although the survey does not represent the entire employed population, it offers a glimpse into the pressures facing workers in an economy where finding another job can be difficult.

Lauren Bright, founder of The Bright Spark Coach, said job insecurity could threaten more than a person’s financial stability, particularly when employment had become central to their identity and sense of purpose.

“We have spent decades teaching people how to get jobs, but not nearly enough time teaching them what to do when that job disappears. Retrenchment is something that happens to you, but it does not define you, and separating the two can be a powerful psychological shift,” Bright said.

Preparing for uncertainty beyond employment

Bright believes preparing for uncertainty should form part of career management rather than becoming an afterthought once retrenchment occurs.

She encourages workers to assess their skills, experience and professional networks while continuing to learn as artificial intelligence and other technological changes reshape workplaces. Building relationships and finding meaning outside employment can also provide support and perspective when careers take an unexpected turn.

For some employees, however, the possibility of retrenchment is already affecting how they view themselves and their future.

One employee said the fear of losing a job could be destabilising even before retrenchment became a reality, particularly for people who had spent decades in the same profession.

“You don’t have to lose your job to feel the destabilising impact of retrenchments. The fear of losing it can be enough. A job, especially one that has been done for 10, 20 or 30 years, provides structure, routine, status, social connection, a sense of competence and, for many people, a very strong sense of identity.

“When someone fears losing theirs, they are not simply fearing a loss of income, but also a loss of their identity and place in the world,” the employee said.

Fear of starting over as AI reshapes work

Another employee described waking up with anxiety about the possibility of having to start over, as concerns about artificial intelligence and the future of work intensified.

“I’m afraid of losing my job, my income, my routine, and the person I became through work. Some mornings I wake up, and the first thing I feel is fear. Will the money last? Who am I without this job?

“Everyone says AI is changing everything, and I’m tired of pretending that doesn’t scare me. I don’t want to start over. But I might have to,” the employee said.

The accounts highlight how job insecurity can affect workers long before their employment is formally terminated, leaving them questioning their financial future, professional identity and ability to adapt.

Bright also urged workers to reconsider the traditional view that a successful career must involve remaining in permanent employment. Consulting, freelancing, contracting and entrepreneurship could offer alternative ways to earn an income, although she cautioned that losing a job should not automatically mean starting a business.