This paper explores the relationship between changes in labor force status and changes in health insurance coverage of nonelderly adults and children from 1999 to 2002. The study examined changes in coverage among the employed, the unemployed, and those not in the labor force. During this period, the number of people who were unemployed or out of the labor force increased. The number of uninsured adults increased by 1.9 million between 1999 and 2002. The largest increase occurred among the unemployed, whose uninsurance rate went from 33.7 percent in 1999 to 34.6 percent in 2002. The unemployed accounted for almost 60 percent of the increase in the number of uninsured adults.