The purpose of this thesis was to study some aspects of the relationship between people caught up in a public assistance situation and their relative levels of morale and adjustment. The area of the study also encompassed an examination of factors in the public assistance situation which may be obstructive in terms of the individual seeking out and holding employment. The study was based on data obtained from face to face interviews with one hundred and twenty people, all of whom are in receipt of full or partial assistance from the City of Winnipeg Welfare Department. Findings indicated that the role of work appears not to be a significant determinant in the morale and adjustment of people in a welfare situation.