People who experience spells of unemployment early in their careers are less likely to own a home at age 32. Meanwhile, those with a successful start in the labour market further benefit from the “bank of mum and dad” when buying their first homes.
A new study published in Social Science Research journal looked at longitudinal data from the Next Steps study. It found that 60% of young adults who experienced extended unemployment or irregular work histories between the ages of 16-25 reported having no savings or investments in their early 30s. In comparison, only 20-40% of young adults with stable careers faced the same situation.
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.
What the researchers looked at
Researchers from the University of Southampton analysed data from more than 5,400 individuals in England, born in 1989-90, who are taking part in the Next Steps study.
The researchers looked at when study members had first entered the job market after school. They examined their monthly work histories from age 16 until age 25 along with their income. They also looked at their financial assets at age 32, including homeownership, as well as their parents’ occupation class and property-owning status.
What the researchers found
About three quarters of young millennials had entered the labour market by age 25 and stayed in work afterwards. Only 12% had stayed in higher education at the end of age 25 and 4% had remained in extended training. The rest had experienced unstable career paths by age 25, with 6% in extended unemployment or inactivity and 6% in intermittent NEET (not in training, work or education) spells.
The authors found that this unstable group was substantially less likely to own a home or hold any financial assets at age 32, even when accounting for their income. This suggests that earlier instability is associated with weaker credit profiles and savings down the line.
Social origins
The researchers found that family backgrounds further widen these disparities. Among those with stable early careers, one in four young adults with property-owning parents were more likely to receive financial support to buy a home than those with renter parents. However, this trend was not seen among those with unstable careers, suggesting parental support may not function as a “safety net” for them.
The authors of the study 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.”
Further information
Read: ‘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.
