Young adulthood is characterized by major life transitions that may trigger identity development, yet little is known about the specific change trajectories and individual and transitional factors that drive identity change during the transition to work. First, we examined mean-level changes and individual differences in exploration and commitment processes. Second, we linked the subjective impact of the transition and narrative agency and self-event connections of a previous turning point to individual differences in exploration and commitment processes. We assessed identity formation across 5 waves spaced across 2 years in 298 Dutch young adults aged 24.6 years (SD = 2.5). We found mean-level decreases in ruminative exploration. Individuals differed significantly in change in commitment making and exploration in depth, which was not predicted by the subjective impact of the transition or self-event connections. Initial levels of narrative agency were positively associated with initial levels of commitment making and exploration in depth. Results indicate that young adults ruminate less about their future plans as the transition to working life proceeds. Moreover, narrative agency in a previous turning point is associated with how young adults make commitments and explore career choices before making the university-to-work transition.