This article examines worklessness among young women living in 10 disadvantaged communities across England. The data shows that despite dynamic economic circumstances and New Labour’s work incentives, responses to the employment aspirations of many young women were inadequate. In addition to the influence of social characteristics such as ethnicity and qualifications in determining employment rates, experiences of discrimination, poor health and caring responsibilities affect many young women. Neighbourhood variations in the reasons for worklessness, even among highly employable young women, suggest that the multiple issues affecting disadvantaged groups are also influenced by local job markets. Occupational segregation and clustering into particular industries are added constraints for young women which are largely ignored in welfare policies seeking to address youth unemployment.