Abstract
Background Employment insecurity is a socioeconomic factor influencing mental health, yet the empirical evidence supporting this claim has important limitations. The fluctuations in employment insecurity throughout the COVID-19 pandemic offered a distinctive opportunity to delve deeper into this issue. By viewing employment as a dynamic process, this study explores the within-person relationship between shifts in employment status and corresponding changes in mental health. Methods 24 waves of data between April 2020 and March 2021 from the Understanding America Study (N=3824) were analysed using a within-person multilevel model. Employment security was modelled as a dynamic process involving transitions between secure employment, underemployment and unemployment with or without benefits. Mental health was measured by questionnaires on core symptoms of depression and anxiety. Results Downward transitions in employment security, from secure employment to underemployment or unemployment without benefits, were associated with worse mental health. Persisting in unemployment without benefits was also associated with poorer mental health, and regaining job security did not immediately improve it. Timely provision of unemployment benefits mitigated the adverse mental health impacts. Significant cross-level moderation effects were observed for prepandemic mental health status, Hispanic ethnicity and education level. Conclusion Downward transitions in employment security compromise mental health, and certain segments of the population experience worse consequences. Regaining job security is not associated with immediate improvement in mental health. Timely provision of unemployment benefits, providing support for both unemployment and underemployment and targeting vulnerable groups are vital for alleviating adverse mental health impacts from losing job security.