The authors review recent studies on the health effects of unemployment & the mechanisms by which unemployment causes adverse health outcomes. The relationship is found to be complex, as ill-health also causes unemployment, & confounding factors include socioeconomic status & lifestyle. However, longitudinal studies with a range of designs are found to be reasonaly good evidence that unemployment is detrimental to health & has an impact on health outcomes – increasing mortality rates, causing physical & mental ill-health & greater use of health services. (47 refs)