August M
Every generation grows up hoping to do better than the one that came before it.
For decades, that familiar climb up the economic ladder has felt incredibly difficult. But a surprising shift in the modern workplace is flipping that narrative entirely, reports The Guardian.
An unexpected bounce
Young workers entering the job market recently are seeing a nice boost in their wallets. A new study shows that Gen Z is actually out-earning millennials when compared at the exact same age.
According to data from the Resolution Foundation, the oldest members of this group are enjoying a mini pay rebound. This stands in sharp contrast to the financial struggle that slammed the previous generation.
Millennials bore the brunt of the 2008 financial crash. Because of that timing, they became the first modern generation to miss out on having higher disposable incomes than their parents.
Tracking the numbers
The numbers show a clear gap. At age 24, workers born in the late 1990s earned 12 percent more in real weekly pay than those born in the late 1980s.
Charlie McCurdy, an economist at the Resolution Foundation, noted how unexpected this turn was. “The living standards stagnation of the millennial generation has been well documented over the past decade. Many have speculated that the breakdown of generational progress has continued for gen Z too,” McCurdy said. He added, “But with the oldest members of gen Z now several years into their working lives, the good news is that they’ve enjoyed a mini pay rebound.”
A major reason for this jump is a rising minimum wage. The lowest earners saw real pay climb 36 percent between 2012 and 2025.
Looming economic threats
But this economic party might not last. Experts warn that global conflicts and rising prices could quickly erase these recent gains.
There is also a massive divide within Gen Z itself. Roughly one million young people in Britain are currently completely out of work, education, or training.
Former minister Alan Milburn warned that this number could jump to 1.25 million by the early 2030s. The Resolution Foundation highlighted this growing risk.
“For a significant share of younger members of gen Z, their careers have not got off the ground at all,” the group stated. They concluded, “Britain’s Neet crisis presents a huge, long-term challenge for gen Z, and tackling it should be a top priority for the government.”
Sources: Resolution Foundation, Alan Milburn
