Substance use is often thought to harm employment prospects, an assumption challenged by the anomaly that people who use licit substances such as alcohol and tobacco are sometimes at a lower risk of unemployment. We argue that employment stability may benefit from the socialisation afforded through using licit substances, particularly in a context where licit substance use is encouraged. Furthermore, because the norms associated with substance use often reflect the gender hierarchy in a society, the impact of substance use on employment stability may be contingent on an individual's gender. Applying Cox proportional hazard modelling to a panel dataset during the critical two decades of China's market-based transition (1991-2011), we found that the impact of substance use on unemployment hazards varies depending on the dosage of the use and the gender of the users. Compared to abstinence, moderate alcohol-drinking reduces the risk of unemployment, and the reduction benefits especially men. The standalone effect of tobacco-smoking is to elevate unemployment hazards; however, this effect is heavily moderated by gender so that female smokers were penalised while male smokers were rewarded in the labour market. Such patterns cannot be explained by community-level modernisation progress and individual-level covariates.