Key facts
- Gen Z's early careers are more financially rewarding than millennials', according to Resolution Foundation research.
- Millennials experienced wage stagnation, partly due to the 2008 financial crisis and subsequent slow real wage growth.
- Real weekly pay for late 1990s-born individuals at age 24 was 12% higher than for late 1980s-born cohorts.
- Younger generations are earning more at age 24 than any generation since the 1950s.
- Lowest-paid Gen Z workers saw significant pay increases due to minimum wage rises.
- The positive outlook for Gen Z's earnings is threatened by rising prices and economic slowdown.
Research from the Resolution Foundation suggests that Gen Z is experiencing a more financially rewarding start to their careers compared to millennials. The thinktank's findings indicate that real weekly pay for individuals born in the late 1990s at age 24 was 12% higher than for those born in the late 1980s. Furthermore, those born in the early 2000s are earning more at age 24 than any generation since the 1950s.
Millennials, born between the early 1980s and mid-1990s, were the first generation to not see higher disposable incomes than their predecessors, a situation partly attributed to their careers commencing around the 2008 financial crisis and prolonged stagnation in real wage growth. The Resolution Foundation's preview of a report due Thursday highlights a 'mini pay rebound' for Gen Z, with the lowest-paid earners seeing the most significant gains due to minimum wage increases, particularly since 2016.
Between 2012 and 2025, median hourly pay for workers aged 22-29 grew by 15% in real terms, compared to 4% for those in their 30s and 11% for all employees. However, the report cautions that this positive trend for Gen Z is under threat. Factors such as higher prices and weaker economic growth, potentially exacerbated by conflicts in the Middle East, could lead to falling real wages. Additionally, the number of young people not in employment, education, or training (Neets) has reached approximately 1 million, posing a significant long-term challenge.