AbstractAlthough not a new phenomenon, unemployment is now a feature of most industrialized societies. Previous research has highlighted the nature of physical and psychological problems associated with this major life event. Before describing the nature of the response to unemployment, it is essential to analyse why work has become so important for social and psychological adjustment. The response to unemployment can then be described as a predictable set of phases similar to other experiences of loss, such as bereavement. Pathology in unemployment, both physical and psychological, has been observed, and the nature of these disorders is described, as well as those groups more likely to suffer and the possible pathways from health to illness.