The purpose of this research was to investigate the process of job search discouragement in unemployed older workers. Specifically, the research examined differences between unemployed actively searching and discouraged older workers who had stopped searching in their job search self-efficacy beliefs, orientations toward work, and psychological well-being and adjustment to unemployment. Particular emphasis was placed upon an examination of the relationship between job search self-efficacy expectations and participation in job search activities. The sample consisted of 148 unemployed older workers stratified on the basis of job search status and gender. The comparison groups included 75 actively searching subjects and 73 subjects who were discouraged and had stopped searching. A non-probability sampling method was used. Data collection was completed through face-to-face structured interviews. Analysis of variance and discriminant function analysis techniques were used to answer the research questions. The findings showed that unemployed discouraged subjects tended to have significantly lower job search self-efficacy expectations, a longer current period of unemployment, lower income, lower life satisfaction, fewer dependents, and higher reported levels of depression, social isolation, and psychological discouragement. Using discriminant functions analysis, the variables explained 61% of the variance between the actively searching and discouraged subjects and job search self-efficacy made the strongest contribution to explaining this variance. Based on the findings, a model for increasing job search self-efficacy expectations in the older unemployed worker population was formulated. This model includes both direct service and policy elements for assisting the unemployed older worker.