The aim of the study was to determine the impact of unemployment on family welfare. It was conducted between April and June 2002 among 200 unemployed registered at the Regional Employment Bureau in Lublin. The method of choice was a questionnaire. The study results demonstrated that the most direct consequence of unemployment is financial impoverishment. Most participants claimed their income did not allow them to cover the basic needs. Managing a very limited budget, they had to give up buying new clothes, more expensive food and toilet items as well as spending money on cultural and leisure pursuits. They were unable to use paid medical services and to meet household payments deadlines. These consequences were borne not only by the unemployed themselves but also by their families. Those with school children had to cut their expenditures on education and in extreme cases the children were unable to attend junior or senior high school. The results indicate that unemployment had a negative impact on many different spheres of family life and in the long run it has a negative impact on the life of the whole society.