Gen Z earning more than millennials did at same age, thinktank reports
8 reported
A new study from the Resolution Foundation indicates that Gen Z workers are experiencing higher pay at the same age than millennials did, marking a "mini-rebound" in earnings. The thinktank found that real weekly pay at age 24 for those born in the late 1990s was 12% higher than for those born in the late 1980s. At age 24, those born in the early 2000s are also earning more than any other generation going back to the 1950s, according to the research. The report notes that the lowest-paid workers saw the biggest gains, with pay for the bottom 10% rising 36% in real terms between 2012 and 2025, partly due to minimum wage increases. However, the study cautions that this positive trend may be threatened by factors such as higher prices and weaker economic growth resulting from war in the Middle East. The foundation also highlighted that about 1 million 16- to 24-year-olds are not in employment, education or training, warning of a "Neet crisis" that could create a "lost generation."
What’s reported
The Resolution Foundation study found Gen Z's early careers are more financially rewarding than millennials'.
Real weekly pay at age 24 for those born in the late 1990s was 12% higher than for those born in the late 1980s.
At age 24, those born in the early 2000s are earning more than any generation back to the 1950s.
The bottom 10% of earners saw pay rise 36% in real terms between 2012 and 2025, partly due to minimum wage increases.
Workers aged 22-29 on median earnings saw hourly pay grow 15% over the same period, compared to 4% for those in their 30s and 11% for all employees.
The study warns the "good news story for gen Z is already under threat" due to higher prices and weaker economic growth from war in the Middle East.
About 1 million 16- to 24-year-olds are not in employment, education or training (Neets).
Former Labour minister Alan Milburn warned of a possible 25% rise in Neets to 1.25 million by the early 2030s without government action.
Key figures
Charlie McCurdy, senior economist of the Resolution Foundation
Alan Milburn, former Labour minister
Sources: The Guardian
