The aim of this 5-year prospective study was to investigate the risk of future unemployment among young people who had experienced early unemployment, and to examine whether this risk was influenced by their health status. A total of 1,083 pupils in the final year of compulsory schooling were included in the cohort. The non-participation rate was 2%. At the time of a five-year follow-up, of those who were unemployed during the first two-year period, 71% of the men and 49% of the women were unemployed, had recent experience of unemployment, or were outside the labour market. The relative risk of being unemployed was 2.39 for men (95% CI 1.85-3.10) and 1.76 for women (95% CI 1.25-2.48) among those who had experienced early unemployment compared with those who had been in Youth Opportunities Programmes (YOP) or in work. Young women in YOP had the same risk of later unemployment as those who had experienced early unemployment, while young men in YOP did not have increased risk. Health status and health behaviour had only a minor influence on the risk of unemployment.