In today’s dynamic and highly uncertain labor market conditions, job insecurity has become one of the common work stressors that employees often experience in the workplace. Compared to quantitative job insecurity (perceived threat of job loss), a growing number of employees are subject to qualitative job insecurity (perceived threat of losing valued job features) which results in poor quality of employment relationships. Although previous research has found a positive relationship between qualitative job insecurity and employee emotional exhaustion, little is known about the psychological mechanisms and boundary conditions associated with the effects of qualitative job insecurity on emotional exhaustion. Drawing upon perseverative cognition theory, the current study proposed and tested a moderated mediation model wherein qualitative job insecurity influenced emotional exhaustion through rumination, with career adaptability acting as a moderator. Two-wave time-lagged data were collected from a sample of 324 full-time employees in Taiwan. Using a moderated mediation analysis with latent variables to test our hypotheses, the results showed that: (1) qualitative job insecurity was positively related to emotional exhaustion; (2) rumination mediated the relationship between qualitative job insecurity and emotional exhaustion; (3) career adaptability aggravated the mediated relationship between qualitative job insecurity and emotional exhaustion via rumination. Theoretical and practical implications are discussed.