Employability, well‐being and job satisfaction following a job loss

Purpose This paper aims to investigate changes in psychological well‐being over time for individuals who experienced a career disruption in the form of a company closing, and to examine the relationships between employability, well‐being, and job satisfaction. It seeks to expand on previous work of job loss relative to the long‐term impact of the experience and on Fugate et al.'s psycho‐social conceptualization of employability. Design/methodology/approach Data were collected at the time of job loss (T1) and six years later (T2). The 73 respondents at T2 represent a stratified random sample of the T1 respondents. Hypotheses were tested with paired sample t ‐tests and hierarchical multiple regression. Findings Results indicate that the negative psychological impact of job loss diminishes over time. Additionally, employability predicted well‐being and job satisfaction. Practical implications The results of the study provide guidance for the design and administration of outplacement and related programs that focus on increasing employability and psychological well‐being, and suggest ways that individuals can shield themselves from the negative consequences associated with a job loss. Social implications The results have policy implications for the design of government funded outplacement and retraining programs. Originality/value The paper is the first to examine job loss over a six‐year period of time, and the first to examine the impact of employability attributes on multiple indicators of well‐being and on job satisfaction in the job loss context.