In order to study the health correlates of unemployment, young urban South Australians, of average age 19.6 years and with 10.5% unemployed, were asked to rate their health and report number of doctor visits of the preceding month. Information about financial state, work satisfaction, and drug use was also collected. The satisfied employed rated their health somewhat more favourably than did either the dissatisfied employed or the unemployed, but changes in work situation over the next year were not related to changes in health. Alcohol use differed according to work situation for females but not males; cigarette-smoking, which did not vary with work situation, was associated with poorer health.