The effect of long-term unemployment and employment attitudes on menta
l health of 99 unemployed people in New Zealand were investigated in 1
989 and again one year later. Each participant was interviewed in-dept
h on employment attitudes, and the General Health Questionnaire-12 (GH
Q), the Rosenberg Self-Esteem Scale(RSE) together with a demographic q
uestionnaire were administered. The results indicated that the percent
age of people who in 1989 wanted employment and of those who were inte
rested in training had decreased within one year, whereas the percenta
ge of people who stated having alternatives to employment increased. T
he group who felt unable to work stayed the same in size. Good mental
health was associated either with re-employment or with those who had
alternatives to employment. Poor mental health was evident in those st
ill wanting employment and in those who felt unable to work. The impli
cations of these findings regarding governmental policies are outlined
.