The results suggest that unemployment does have a direct effect on property crime and drug dealing that is mediated by other explanatory variables. The bulk of the impact of unemployment on crime is felt indirectly through the negative emotional reaction it generates in the form of anger, and more strongly directly where its impact on crime is conditioned by monetary dissatisfaction. Anger over unemployment is also the result of negative subjective interpretations of economic situations and a continued attachment to the labor market. These negative subjective perceptions lead to greater participation in criminal activities directly. Criminal involvement is also encouraged by peers, deviant values, and a lack of fear of punishment. This use of the general strain perspective allows the extension of previous research on street youth, unemployment, and crime in several ways. While earlier research reported an inconsistent or weak relationship between unemployment and crime, recent work has generally revealed that unemployment or changes to the unemployment rate are positively related to some types of criminal behavior. Researchers have suggested that people’s interpretation of their labor market situation plays a large role in shaping their responses to it. Utilizing general strain theory, this research examined the role that unemployment played in the criminal behavior of 400 homeless street youth. It pays particular attention to the way that these youth interpret their labor market experiences and how together these interpretations and experiences influence criminal behavior. Tables, notes, and references