This paper used Longitudinal Study of Australian Children data to analyse links between parental employment and the wellbeing of families.The study found that jobless families and families with short part-time hours (fewer than 21 hours) were at considerable financial disadvantage compared to families with full-time or long part-time hours of employment.Of the children in the study, 5 per cent were living in a family with short part-time hours, and 11 per cent lived in a jobless family – this figure includes half of the children of single parents. Developmental outcomes for these children were lower than those for children in families working more than 21 hours. Joblessness and short part-time hours contributed to these poor outcomes for children through the effect of financial stress on parents.Authored by Jennifer Baxter, Matthew Gray, Kelly Hand, and Alan Hayes