Key facts
- Gen Z individuals are earning more in real weekly pay at age 24 than millennials did at the same age.
- Research was conducted by the Resolution Foundation.
- The findings indicate a rebound in earning potential for Gen Z.
- Millennials experienced a period of wage stagnation.
- The comparison is based on real weekly pay at age 24.
Research conducted by the Resolution Foundation indicates that Generation Z is currently earning more in real terms at age 24 than millennials did at the same age. This development signifies a rebound in earning potential for the younger generation, following a period of wage stagnation that affected millennials. The thinktank's findings highlight a generational shift in financial trajectories, with Gen Z showing stronger initial earning power.
This trend suggests that the economic conditions or opportunities available to Gen Z have allowed for higher real weekly pay compared to their millennial predecessors at a comparable life stage. The Resolution Foundation's analysis focuses on real weekly pay, which accounts for inflation, providing a clearer picture of purchasing power.
The report underscores a potential improvement in the economic outlook for young people entering the workforce today, contrasting with the challenges faced by millennials who experienced a prolonged period where their wages did not keep pace with inflation or economic growth. This divergence in earning trajectories at a key age point could have significant implications for wealth accumulation and financial stability over the long term for both generations.