The present study provides the first investigation of differences in labour market outcomes by sexual orientation utilizing Survival Analysis techniques. A three-stage modelling approach has been utilized. Zero- Inflated Negative Binomial regression has been conducted to the duration in unemployment, while Probit analysis to the probability of employment. A parametric Gompertz baseline hazard has been determined, which enables us to fuse unemployment duration and employment event into one analytical feature. Significant differences by sexual orientation have been detected. Regarding employment probabilities, homosexual males face a disadvantage of seven per cent compared to heterosexual males, while the probability for homosexual females increases positively with the duration in unemployment. No significant differences have been found regarding unemployment duration. When unemployment duration and probability are set into relation, differences by sexual orientation vanish.