In this study we review recent research literature focused on relationship between unemployment and depression, and theories emphasizing the mechanisms by which unemployment may contribute to increased levels of depression. Our research investigated depressive symptomatology and its predictors among unemployed people (N = 453) varying in length of unemployment. Results showed that self - mastery, self - esteem, financial strain, gender, intensity of job - seek behavior and length on unemployment were significant predictors of depressive symptoms. Results are discussed in light of current theories of unemployment and mental health and recommendations are made for practice.