Present research provides little support for the prediction central to hopelessness theory that hopelessness mediates the full relationship between vulnerability factors (e.g. stressful life-events, attributional style) and depression. Indeed, contrary to hopelessness theory, an accumulating body of research indicates that hopelessness moderates the relationship between vulnerability factors and depression. The proposal in the present study was that the type of hopelessness typically measured in the research literature has trait-like characteristics and cannot be used to test the mediation hypothesis. The prediction was that hopelessness would operate as a mediator and not a moderator if items in a measure of generalized hopelessness were reworded to measure event-specific hopelessness. A sample of 153 unemployed people completed measures of attributional style for positive and negative outcomes, stress associated with being unemployed, job hopelessness, and depressive symptoms. The results supported the hypothesis that event-specific hopelessness mediates, but does not moderate, the relationship between vulnerability factors and depression. Implications for hopelessness theory and future research are discussed.