Orientation: The psychological empowerment of employees might affect their engagement. However, psychological empowerment and employee engagement might also be influenced by job insecurity.Research purposes: The objective of this study was to examine the relationship between psychological empowerment, job insecurity and employee engagement.Motivation for the study: Employee engagement results in positive individual and organisational outcomes and research information about the antecedents will provide valuable information for the purposes of diagnosis and intervention.Research design, approach and method: A correlational design was used. Survey design was conducted among 442 employees in a government and a manufacturing organisation. The measuring instruments included the Psychological Empowerment Questionnaire, the Job Insecurity Inventory, and the Utrecht Work Engagement Scale.Main findings: Statistically significant relationships were found between psychological empowerment, job insecurity and employee engagement. A multivariate analysis of variance showed that affective job insecurity had a main effect on three dimensions of psychological empowerment (viz. competence, meaning and impact) and on employee engagement. Affective job insecurity moderated the effect of psychological empowerment on employee engagement.Practical implications: The implication of the results is that interventions that focus on the psychological empowerment of employees (viz. meaningfulness, competence, self-determination and impact) will contribute to the engagement (vigour, dedication and absorption) of employees. If job insecurity is high, it is crucial to attend to the psychological empowerment of employees.Contribution: This study contributes to knowledge about the conditions that precede employee engagement, and shows that the dimensions of psychological empowerment (namely experienced meaningfulness, competence, impact and self-determination) play an important role in this regard.