Research examining the effects of unemployment among white collar workers has produced patterns of findings different to those for lower socio-economic groups. The present longitudinal questionnaire study examines the psychological impact of managerial job moves which are downward in status, and considers the effects of periods of unemployment between job changes. The results indicate that among managers the negative impact of downward status moves on psychological adjustment is greater than that of temporary role loss. These effects are associated with decrements in preceived growth and development opportunities at work. The relationship between work and non-work life for our understanding of psychological adjustment is considered.