The aim of this study was to investigate the role of meaningful leisure activity in reducing latent deprivation during unemployment. Samples of unemployed (N=201) and employed (N=128) participants were asked to rate their levels of latent deprivation using the Access to Categories of Experience Scale. They were also asked to complete the Pro le of Mood States depression subscale, Adult Self-Perception Pro le, Meaningful Leisure Activities Questionnaire, and to rate the frequency with which they engaged in social and solitary leisure activities. Results indicate that unemployed participants engaged in social leisure activities less frequently than employed participants and solitary leisure activities more frequently; and they reported higher perceived latent deprivation, higher depressive affect and lower self-esteem. Structural Equation Modelling revealed that a sense of latent deprivation contributed to depressive affect and reduced self-esteem in both unemployed and employed samples, although the impact of latent deprivation upon depressive affect and self-esteem was signi cantly greater in the unemployed sample. The meaning attained through social and solitary leisure activities acted to reduce perceived latent deprivation, and thus psychological distress, in unemployed participants. However, only social leisure activities had an impact upon latent deprivation and psychological health in the employed sample. Overall, these ndings suggest that participation in leisure activities that are meaningful, rather than simply frequent, may be a constructive and readily achievable coping response during unemployment.A major explanation of the negative relationship between unemployment and psychological health is Jahoda's (1979, 1992) deprivation theory. Jahoda argued that unemployment causes psychological distress because it deprives people of the latent functions that employment provides. These functions are time structure, regular shared experiences, information about personal identity, a link with collective purpose and enforced activity. In support of Jahoda's theory, Evans and Haworth (1991) and Haworth and Ducker (1991) showed that deprivation of shared experiences, information about identity, collective purpose, and enforced activity were associated with low self-esteem, poor psychological health, and reduced life satisfaction in unemployed people. In addition, Feather and Bond (1983)