This study examined a causal relation between employment and depression among low-income young mothers who participated in New Chance Demonstration Study(NC). Using baseline and first follow-up interview data from NC study, this study selected 756 young mothers who were at risk of depression and unemployed at baseline. About 18% of them were employed and 45% of them were no longer at risk of depression at the first follow-up interview. The young mothers grade level and their race/ethnicity were significantly related to the number of weeks employed between the two time points and employment at the 1st follow-up interview. It was also found that employment was negatively associated with depression at the 1st follow-up interview. These findings imply that employment can ameliorate depressive symptoms of low-income young mothers.