The paper compares the experience of unemployment in Britain with that in t
hree former state socialist societies - Bulgaria, the Czech Republic and Sl
ovakia, countries with relatively recent welfare systems, providing a low l
evel of coverage for the unemployed. The analysis examines the implications
of the different types of welfare regime for financial stress, for social
isolation and for psychological well-being. While it finds that the implica
tions of welfare arrangments depend considerably on the nature of the labou
r market, it concludes that the combination of very high unemployment with
low welfare coverage - exemplified by the case of Bulgaria - has exceptiona
lly high social and personal costs. There is no evidence that these are off
set by the emergence of alternative welfare arrangements based on community
solidarities.