Aim

Mental disorders are the leading cause of work disability among young adults in the industrialized world. Factors predicting employment after long‐term psychiatric work disability are largely unknown.

We linked personal and clinical information from the benefit applications and medical certificates of 1163 young adults (18‐34 years) with a new‐onset fixed‐term psychiatric disability pension in 2008 with employment records between 2005 and 2013. The outcomes were starting employment during and being employed at the end of follow‐up.

Of the participants, 48% had been employed during and 22% were employed at the end of follow‐up. Sustained employment history, university education (master's degree) and no recorded psychological symptoms in childhood were associated with both subsequent employment outcomes. Women and participants under 25 years were more likely to start employment. Depression and other mental disorders (vs psychotic diagnose) and having no comorbid mental disorders or substance abuse were associated with employment at the end of follow‐up.

Sustained employment history, university education and no recorded psychological symptoms during childhood predict a return to employment among young adults after a fixed‐term psychiatric work disability pension. Pro‐active interventions in psychological problems during childhood could enhance employment after a period of work disability