Research on the formation of work orientations has generally focused on the role of organisational socialisation and ascriptive characteristics. Relatively little is known about the influence of external labour market conditions. Given theoretical interest in preference change endogenous to labour market processes and in the ongoing importance for trade unions and managers to respond to the needs of workers, the thesis asks: to what extent are external labour market conditions related to variation in work orientations? While the thesis explores whether workers adjust their orientations rationally in response to opportunities in the local labour market, the central finding is that workers have little awareness of general labour market conditions, and that adaptation to the local context is strongly mediated by the “psychological” segmentation of labour markets.

Using a mixed-methods design, the thesis combines analysis of the British Skills and Employment Survey and data from semi-directed interviews conducted in two local labour markets in Great Britain. The analysis focuses on testing whether workers’ evaluation of their labour market position – namely through perceived employability and satisfaction with job security – mediates the relationship between local labour market conditions and work orientations. Multilevel regression models first reveal that the “material” and “intrinsic” work orientations are associated with differences in local labour market characteristics. Yet, in all cases, perceived employability and evaluations of job security play very little role in explaining the correlations.

The qualitative interview data suggests that the influence of labour market conditions is indirect. First, interviewees’ perceptions of local labour markets are revealed to be largely holistic and historical. Second, when evaluating their position within the labour market, interview participants only focused on a subset of all jobs. As such, each worker appeared to filter information on the basis of their work orientations and to have their own “subjective” labour market.

Overall, workers are found to assess their position within the labour market through the lens of their work-life narratives, of which, work orientations represent a key manifestation. Work-life narratives are grounded in past experiences, with differences emerging between workers as a result of labour market segmentation. Where labour market conditions (and segmentation) play a small role is by affecting the probability that individuals will experience events such as unemployment, positive or negative feedback at work, and successful promotions. These serve as signals which can enhance or weaken workers’ belief in their ability to secure high-quality jobs, and may occasionally lead to a change in work orientations.

As such, the findings suggest that the influence of local labour market conditions on work orientations is relatively weak. It operates either indirectly, by creating differentiated employment experiences based on segmentation and the uneven geographical impact of labour market change, or by generating diffuse concerns or hopes regarding the future economic prospects of a local area.