This study examines whether and how a wide range of potential barriers to work, including psychological characteristics and attitudes, are associated with current employment in a recent sample of welfare recipients in Michigan (N = 672). Psychological factors include measures of depressive symptoms, work attitudes, and perceived risks associated with leaving welfare. Over and above demographic, economic, and contextual factors, positive psychological characteristics and attitudes were found to be moderately associated with currently being employed. Implications for welfare-to-work programs and policy are discussed.