This review explores the literature on the concept of work in unemployment and its relationship to health. A range of literature about the activities of unemployed people is reviewed and discussed with reference to three questions: What do unemployed people do?, What activities are associated with the health of unemployed people? and Do unemployed people work? From the literature, two groups of unemployed people are described: those who are characterised by active patterns of activity and those characterised by passive patterns. It is argued that the active group is psychologically healthier than the passive group. Concepts of work in both groups of unemployed individuals are presented, arguing that the active group seeks to replace employment with other work activities and that the passive group are engaged in work also, but that this presents as fret and preoccupation about their situation. These concepts of work are presented in the context of three major theoretical models of the personal impact of unemployment. Finally, implications for practice and directions for future research are suggested.