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This study focused on the impact of reemployment on access to both the latent and manifest benefits of employment, and mental health. Existing theories predicted that reemployment would positively affect these variables. One hundred and fifteen unemployed participants in South East Queensland, Australia, completed two paper-and-pencil surveys administered 6 months apart that included measures of financial hardship, financial strain, access to the latent benefits (collective purpose, social contact, status, activity, and time structure), and mental health (as measured by the 12-item General Health Questionnaire). Participants who gained employment (N = 58) were better off financially, reported greater access to social contact and time structure and had significant improvements in their mental health at Time 2. Participants who remained unemployed showed no change over time. Whilst these results highlight that there is a strong positive impact of reemployment, it is acknowledged that the picture is much more complex than what we have reported here. We recommend that structured programmes be available before unemployment is experienced, particularly those that have a beneficial preventive effect on mental health among those participants most at risk of psychological disorders.