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The purpose of the present study is to examine how perceived employability relates to job exhaustion, psychological symptoms and self‐rated job performance in involuntary and voluntary temporary employees compared to permanent employees.

The study is based on a cross‐sectional design using a sample of university teachers and researchers (n=1,014) from two Finnish universities. Of the sample, 40 percent (n=408) are permanent employees, 49 percent (n=495) involuntary and 11 percent (n=111) voluntary temporary employees. Most respondents (54 percent) have education above a Master's degree, the average age is 43 years, and 58 percent are women.

The results of general linear model analyses show that perceived employability promotes favorable outcomes among all respondents. However, the negative relationship between perceived employability and job exhaustion and psychological symptoms is stronger among voluntary than among involuntary temporary employees.

The study indicates that although perceived employability seems to be important to all employees, involuntary temporary employees benefit least from high perceived employability in terms of individual well‐being.