This article examines the sociological consequences of mass unemployment in the Austrian village of Marienthal, where the closure of the local textile factory left nearly all of its 1,500 inhabitants without work for several years. Drawing on diverse data sources—including administrative records, cooperative shop accounts, school observations, household interviews, diaries, and standardized questionnaires—the study develops a multifaceted picture of the community’s transformation under prolonged economic deprivation. Particular attention is given to patterns of daily life, such as food consumption, child welfare, and political engagement, illustrating how unemployment alters both material conditions and psychological outlooks. Evidence reveals the emergence of widespread resignation, characterized by reduced aspirations, social disengagement, declining political participation, and increased interpersonal conflicts. Classification of the population into attitudinal groups—“unbroken,” “resigned,” and “broken”—further highlights the varying degrees of adaptation and demoralization in response to enduring joblessness. The findings underscore how structural unemployment not only erodes economic stability but also undermines social cohesion, reshaping community life at both collective and individual levels.