The previous literature on unemployment often fails to distinguish various categories of the unemployed over time. This study utilizes pooled national survey data which provides a record of employment I unemployment over a five year retrospective period. The demographic characteristics of the long‐term employed (i.e., full five years) are compared to the short‐term unemployed (i.e., one year); the long‐term unemployed (i.e, at least four of five years) who return to work; and the long‐term unemployed (i.e., at least four of five years) who have not returned to work. Groups are contrasted using one‐way analysis of variance and discriminant analysis. Results indicate that age, occupational prestige and sex differentiate the employed from the unemployed as a group. Further, the long‐term unemployed who return to work can be clearly differentiated by education level from the long‐term unemployed who have not returned. The implications of these findings