Introduction Research has been done on the relationship between the physical and mental health of the employed and the unemployed. Unemployed and non-employed people are differentiated. While unemployed are people who are young and capable to work but are out of job and are looking for a job whereas the non-employed are the people who are out of work and are not looking for a job. Most of the research has centred on the people who are ‘unemployed’ and not on people who are ‘non employed’ though many of the findings are applicable to both classes of people. In this research work, both the groups are looked at together since they do not really bring in a major difference in behaviour (Jahoda, 1979). Though there is no significant change in the exposed issues and problems between the two groups, the health conditions change drastically between the two. A literature review of the research that has already been carried out on this topic is first analysed. Essential references that talk about and research on the research question is taken up. The input from these and the major observations are taken to give the direction to the research under question. Based on these evidences, the research question is answered. The literary study itself will look at two areas of health: physical and mental. Though both are interconnected, one could be the causal factor for the other. On such occasions, the relationship is presented by the research evidences. Physical and Psychological Health when off work While on the job, most of the people go through a string of work related illnesses. This includes stress, hazards of work situations and other general conditions that could result from a normal work environment. This is particularly true if there is a larger than life pressure at the job and the person is too inclined to take up responsibilities beyond his limitations. However, in the case of people who are either laid off or people who are just out of work, it has been consistently found that they do suffer from a large number of ‘workless’ related health problems. In some cases, though there was no clear evidence of any specific ill ness, when a company was said to be closing up or really closed out, the employees who are getting laid off suffered an increase incidence of illnesses (Shabracq et al, 1996). According to the research paper, there was no real clinical diagnosis on any of the illnesses however; the concerned person reported problems pertaining to his health. The research into a similar survey by Warr (1983) and later by Jackson and Warr (1984) indicate that though the people reported an increased anxiety, heart problems and chronic heart diseases, during the no-job period and there was clear evidence that the two are related. However, it was also found that for some of the people who were in really stressful jobs, their psychological or mental health improved during the jobless period. But this was found to be different with other sets of people who were not on stressful jobs. These people who were not on stressful jobs, found them to be under pressure when they went out of job. Warr and Jackson (1984) report, that some of the people, who were without jo