The prevalence of unemployment and underemployment was explored longitudinally in 248 recent graduates (73 males and 175 females) over an 18–24 month transition from final year student to 9–12 months post-graduation. Over this period changes in levels of psychological distress, health behaviours, social support, optimism and achievement motivation were measured. Results show that both unemployment and underemployment have deleterious effects on psychological and physical health, social support, optimism and achievement motivation.
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