Family formation is fostered by circumstances of plannability and economic and social stability. Conversely, as documented in previous literature, employment instability can hamper fertility decisions. Based on data from the Italian Labour Force Survey, this paper examines the association between employment-related instability and the likelihood of having a first or additional child from 2000 to 2020 in Italy, covering a period characterised by increasing labour market deregulation. Our results show that individual employment instability, such as temporary employment or unemployment, negatively influences the likelihood of having a first and second child, while the progression to higher parities is less affected by employment situations. Building upon previous research, we demonstrate how the negative association between fertility and employment instability has intensified over recent decades, especially for women. The large sample size also allowed for the examination of specific differences by educational levels and both partners' employment situation. In contrast to traditional views about gender roles, the employment situation of one's partner seems to matter less for women than for men.