A prospective study was started in 1981, including all 1083 pupils in the last year of compulsory school in a municipality in the northern part of Sweden. All pupils were followed up after 2 years. They were investigated with a comprehensive self-administered questionnaire as well as studies of records and interviews with teachers and school nurses. The total non-participation rate in the study was less than 1%. The main results of the study are the following: unemployment leads to increased psychosomatic and psychological symptoms, decreased social activities in clubs, increased abuse of alcohol and narcotics and increased utilization of health care services. The effects of unemployment are somewhat different among girls and among boys. Girls are more exposed to unemployment and unemployment also leads to more negative effects among them. Hidden unemployment has the same effects as unemployment but the effects are less pronounced.