Employee psychological well-being is an important factor associated with organizational effectiveness, productivity, and employee commitment. However, uncertainty regarding continued employment, particularly among contract employees, may contribute to job insecurity and adversely affect employees’ psychological well-being. In the oil and gas industry, changes in business conditions and employment policies may increase concerns regarding job stability among employees. This study aimed to examine the relationship between job insecurity and psychological well-being among employees of an oil and gas company. This study employed a quantitative correlational design involving 114 employees, comprising 57 contract employees and 57 permanent employees, who were selected using purposive sampling. Data were collected using the Job Insecurity Scale developed by De Witte and adapted by Pienaar et al. and the Psychological Well-Being Scale based on the framework of Ryff and Keyes. Data were analyzed using Spearman’s rank-order correlation with IBM SPSS Statistics 26. The findings indicated a significant moderate negative correlation between job insecurity and psychological well-being (r = ?0.493, p < 0.05), indicating that higher levels of job insecurity were associated with lower levels of psychological well-being. Additional analyses revealed that contract employees experienced higher levels of job insecurity than permanent employees, whereas no significant difference in psychological well-being was observed between the two groups. Overall, job insecurity was significantly associated with employees’ psychological well-being. Organizations should therefore consider strategies to enhance perceptions of employment security, strengthen organizational communication, and provide employee support to promote a psychologically healthy work environment.
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