Local Economy
An employee's view of his job is impacted by the state of the local economy. If jobs are plentiful and the economy is booming, employees are happier overall and their behavior and performance mirror that. On the other hand, when times are tough and unemployment is high, employees can become fearful and anxious about holding their job. This anxiety leads to lower performance and lapses in judgement. In some employees, however, fear of job loss can be a motivating factor to perform better.