There is growing evidence for an association between unemployment and reduced psychological well-being. Moreover, this relationship appears to be moderated by a number of factors This article describes a longitudinal study of two cohorts of young people in the first 3 years of their adult working lives Evidence is presented to show that psychological distress is higher for the unemployed than for the employed and that changes in employment status lead to changes in distress scores This relationship is shown to be moderated by individuals' commitment to paid employment such that the effect of movement between work and unemployment is greatest for those whose employment commitment is high Recent cross-sectional studies have shown a significant positive association of unemployment with reduced psychological wellbeing This association has been demonstrated with respect to happiness (Bradburn, 1969), life satisfaction (Campbell, Converse, & Rodgers, 1976), satisfaction with self (Cohn, 1978), anxiety and positive and negative affect (Warr, 1978), negative self-esteem (Warr & Jackson, in press), minor psychiatric morbidity (Banks & Jackson, 1982; Stafford, Jackson, & Banks, 1980), and probability of being identified as a psychiatric case (Bebbmgton, Hurry, Tennant, Sturt, & Wing, 1981) The cross-sectional link between employment status and well-being is especially clear with respect to male workers and those female workers who are themselves principal wage earners. For other groups of women the pattern is more complex, with a number of important moderating variables coming into play (Warr & Parry, 1982).One factor that has been shown to moderate the relationship between employment status and psychological well-being in both men and women is the dispositional variable that may be referred to as employment commitment This reflects the degree to which Requests for reprints should be sent to Paul R Jackson, MRC