To compare the health of young unemployed Australians during a period of low unemployment (April 2007: rate 4.4%) against published Australian norms for 18-24 year olds and unemployed people during a time of higher unemployment (February 1995 to January 1996: rate 8.1% to 8.9%). Two hundred and fifty-one unemployed 18-25 year olds residing in New South Wales completed the SF36 Health Survey version 2 (SF36v2) during a time of low unemployment. SF36v2 subscale and component summary scores were compared with published norms for 18-24 year olds and for unemployed persons during a time of higher unemployment. Young unemployed people during a period of low unemployment reported poorer health in all areas when compared with age-matched norms and poorer psychological health when compared with the published norms for unemployed people from a time when unemployment rates were higher. The health of young unemployed individuals during a time of low unemployment was poor when compared to both the general population and to unemployed people during a time of higher unemployment. Public health interventions must focus on improving the health of young unemployed people to support their engagement with and contribution to Australian society.