The effect of residence on the working environment of staff in the public labor market

Abstract

Icelandic municipalities have faced financial challenges in recent years, with most operating at a deficit. Consequently, many are unable to deliver the services mandated by law. The research question was: What are the effects of the financial situation and the municipality’s location on the work environment of employees in the public sector? By answering this research question, the aim is to gain information on whether the financial situation of the municipalities or whether the municipalities are located in the capital area, or the countryside affects the well-being and work environment of municipal employees. An online questionnaire was conducted among employees of 14 municipalities in 2021. The results showed that many employees were measured with work-related stress. Job satisfaction was the strongest predictor of work-related stress, but the location and financial status of the municipalities also had a significant effect. It is essential to pay close attention to the employees’ working environment, especially where the financial situation is weak, and to be vig[1]ilant about the work-related well-being of the employees due to the negative aspects in the working environment that uncertain times and financial difficulties can cause.