Based on the data of a representative survey of residents of St. Petersburg (N=1226), the article investigates changes in employment faced by the citizens during the peak of restrictive measures and regime of selfisolation, as well as the relationship of these changes with psychological wellbeing. The research shows that the overwhelming majority of respondents experienced negative changes associated with the format of work and its conditions. Selfemployed and individual entrepreneurs have been the most affected category in terms of financial losses, while women in - terms of psychological wellbeing. Contrary to international assessments, changes in employment of the younger generation cannot be interpreted as predominantly negative. The article argues that the loss of job and deterioration of the financial situation contribute significantly to the worsening of psychological wellbeing. Other kinds of change, including the shift to teleworking, are not associated with the dynamics of indicators of psychological wellbeing. A subjective assessment of the changes associated with the COVID19 pandemic as threatening is the second factor in the worsening of the mental state in the acute period of the pandemic and the beginning of the implementation of pandemicrelated restrictive measures.