Theorists have argued the importance of the latent and manifest benefits of employment and their relationship with psychological well-being. Although many studies have examined these variables, there has been little consistency in the range of measures used. Two previous specific measures have been found to be inadequate or unreliable. To date, no one scale adequately measures all five latent functions and the manifest function. The aim of this study is to (1) develop a scale that measures both the manifest and latent benefits of employment, and (2) develop a scale that satisfies professional standards for psychometric adequacy. The study was conducted using a three-phase development and testing procedure. In Phase 1, in-depth interviews and experts were used in the item generation process. In Phase 2, item analysis, inter-item and item-total correlations were examined and remaining items were subjected to a series of three principle axis factor analyses. A 36-item scale, with six homogenous and reliable scales, was then administered and subjected to a confirmatory factor analysis in Phase 3. Participants were 33 males and females who had experienced substantial period of unemployment in the previous 12 months (Phase 1); 307 unemployed males and females (Phase 2); and 250 unemployed males and females (Phase 3). As a result, a reliable and valid 36-item Latent and Manifest Benefits (LAMB) scale was developed. Information gained from this scale can be used to better target interventions for the unemployed.