This study explored the consequences of perceived job security and insecurity on the psychological and physical health of employees. Data were gathered from employees of a large midwestern manufacturing organization that produced products for material removal applications. Surveys were sent through company mail to a stratified random sample of 442 employees resulting in 230 usable surveys. Subjects completed measures of job security, psychological and physical health, organizational commitment, job performance, and demographic information. The results provided support for the general hypothesis that feelings of job security/insecurity would be related to psychological adjustment and job performance. The relationships appeared to be fairly complicated, contingent on other perceptions and/or employee characteristics. In general, employees who reported feeling insecure in their present job and who felt that it would be difficult to find a comparable job elsewhere experienced more psychological difficulties than did employees who reported job and/or employment security. (NB)