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This paper aims to examine employee perceptions of the labor market in the employee turnover intention model and explores how different situations outside work (labor market conditions) play a role in employee-organizational membership. In addition, it also examines the mediating role of commitment in the relationship between stress and the turnover model.

Data were collected from 628 private school teachers working in the economically depressed state of J&K (India), which were randomly selected. Confirmatory factor analysis was used for validation of a scale. Structural equation modeling and PROCESS by Hayes was used to test the hypothesized relationships between the study variables.

The antecedents of occupational stressors contribute negatively toward employees’ psychological state resulting in undesirable employee-organizational relationships such as high turnover intentions and low organizational commitment. Nevertheless, lack of external job opportunities compels employees to maintain organizational membership, even though against the stressful working environment.

This study while acknowledging the inherent limitations, questionnaires are susceptible to and single sectional nature of the study poses limitations.

The practical implication explains that the employee and organization relationship is governed more by external economic conditions than by the psychological feelings of the employees toward the organization (organizational commitment). As also, the moral system of employees, as well as their feelings toward the noble profession makes them feel morally exalted and this binds them to the membership of the organization.

This study mainly focuses on, to understand if and how the conditions of the labor market relate to the employees’ attitudes. This would enable us to gain more insights to the systematic relations of employees’ attitudinal variables such as occupational stress, organizational commitment and employee turnover intentions.