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This report investigates the effects of unemployment and underemployment amongst people aged 45 years and over in Australia. The research involved a case study of the personal experiences of a group of older job seekers in Melbourne's East. The first part of the report provides an overview of issues including the nature of unemployment amongst older people, national age projections, age discrimination in recruitment, retraining and retrenchment, and the personal consequences of unemployment. The second part of the report reviews the methodology and findings of the research. Key findings are discussed in relation to: participants' profiles; labour force history and job search activities; barriers to employment; experiences of government and private employment services; how participants rated their chances of finding work; how services could be improved; effects on mental and physical health; the impact on finances; effects on relationships; and social withdrawal. The report argues that Australia as a society cannot afford the ongoing displacement of older workers from the labour market, both economically or socially. A number of recommendations are made to promote the recognition of the growing proportion of older workers in the labour force, to adapt employment practices to take advantage of this resource, and to ensure that individuals are able to strategically place themselves in a dynamic employment market and sustain themselves into retirement.