The consequences of work instability

A new study using Next Steps data shows that people of your generation who experienced spells of unemployment between ages 16-25 were less likely to own a home at age 32.  

Meanwhile, those with a successful start in the labour market further benefitted from the “bank of mum and dad” when buying their first homes.

What we asked you

In the Age 25 Survey, you told us whether you were in education, employment or training from your mid-teens to mid-20s. Researchers from the University of Southampton also used information from the Age 32 Survey about your financial assets such as whether you owned a home. 

What the researchers found 

Most study members (72%) experienced relatively stable early careers, entering employment by age 25 and then remaining in work. A further 12% were still in higher education and 4% were in extended training. 

However, around one in eight (12%) experienced unstable early career paths, characterised by prolonged or intermittent periods of not being in employment, education or training. 

The researchers found that 60% of study members who experienced extended unemployment or irregular work between ages 16 and 25 had no savings or investments by their early 30s. In comparison, this was true for only 20-40% of those with more stable careers. This suggests that early career instability can have a lasting impact on people’s financial security and savings. 

Family backgrounds 

Among young adults with stable early careers, those with property-owning parents were more likely to receive financial support to buy a home than those with parents who rented. 

However, this pattern was not seen among those with less stable careers, suggesting that parental support does not always act as a safety net.  

Why this research matters 

The authors of the study said: “Recent cohorts of young adults are facing increasing difficulties in buying their first homes. By looking at people’s full transition from school to work, as well as their parental background, our findings point to the drivers that widen these disparities within the same generation.” 

They added: “These findings suggest the need for policies that address both early career instability and unequal access to asset-building opportunities. This could include school-level initiatives that support and guide labour market entry decisions, targeted savings schemes for young adults and first-time homebuyer support.” 

Read the full research report here

‘Employment stability and social origin: Cumulative advantages in young adults’ homeownership and financial asset accumulation’ by Vincent Jerald Ramos and Ann Berrington was published in Social Science Research in July 2026.