This study examined if anxiety mediates the relationship between job insecurity and job dissatisfaction by using affective events theory. The moderating effect of psychological capital and perceived employability on the hypothesized mediation effect of anxiety was also investigated. A convenient sample of 1,014 full-time casino and hotel employees in Macau, China, was recruited for a cross-sectional questionnaire survey. Research hypotheses were tested using SPSS Process Marco. As hypothesized, anxiety mediated the relationship between job insecurity and job dissatisfaction. Moderated mediation analyses showed that psychological capital and perceived employability moderated the hypothesized mediation effect, which was observed only when these personal resources were low. This study integrated the affective state in understanding the impact of job insecurity and provided empirical evidence on the role of personal resources in mitigating the impact of job insecurity. The findings present implications for developing effective management strategies and practices to manage job insecurity issues.