The psychological health and labour market commitment of 1150 unemployed 17-year-olds in 11 urban areas of England were examined. Distress levels were significantly higher than among comparable employed samples, and symptoms had usually commenced after the onset of unemployment. Unemployed black respondents (of Afro-Caribbean descent) were found to exhibit significantly lower levels of distress and depression than whites. However, no differences were recorded between black and white respondents in respect of anxiety, financial strain and concern over being unemployed. Commitment to the labour market was significantly greater among white males than black males, perhaps because the latter have responded realistically to their disadvantaged labour market position. However, ethnic differences in commitment were generally absent in the case of females. Length of time out of work was unrelated to affective well-being and employment commitment in both ethnic groups, but job search attitudes were significantly less positive among respondents who had been unemployed for longer periods.