The chapter assesses the links between employment and housing at the levels both of policy and of individual households, following the pathways framework. At the level of policy the chapter traces the influence of the discourse of a flexible labour market on housing policy. The main theme is the dominance of the discourse in setting the agenda of housing policy. At the level of individual households, the chapter reviews existing research and calls for more studies examining the relationship between employment and housing decisions.

Employment is one of the key factors underlying family and household structures. It has an important influence on changing patterns of housing demand and need. It is also an important factor in the income of a household and its ability to afford access to housing. Clearly, households need to be able to pay for housing and, for many, employment provides the income for this. Employment position is a key influence on differential access to parts of the housing field. This may be through the ability of a household to afford particular housing options, such as owner-occupation, or to access certain parts of a housing sector or particular areas. In addition, because employment opportunities are spatially differentiated, they may influence where a household may wish to or be able to live, and therefore influence what households expect from housing.

At the level of the individual household, employment and housing pathways are usually closely linked. Decisions on one will usually have implications for the other, and so the two will often be considered together. There may be trade-offs between the two, or one may be dominant. For example, a decision to remain in an existing house or area may constrain the employment opportunities available. Conversely, a decision to move areas to take up an employment opportunity may result in housing dislocation and possibly a reduction in housing quality. An understanding of how these trade-offs are made and how the housing and employment pathways intertwine is important to a general understanding of the place of housing in people's lives.

The chapter starts with a very brief review of economic changes that have been given the label ‘globalisation’.