0 comments
At 24, Gen Z workers born in the late 1990s are apparently being paid more than any cohort since those born in the 1950s. The bigger picture isn’t quite so rosy, however.
Gen Z’s early careers are more financially rewarding than those of millennials, according to research from the Resolution Foundation, a British thinktank.
It says that those born between 1997 and 2012 are experiencing a ‘mini rebound’ in pay packets, suggesting Gen Z has entered the labour market on stronger financial footing than millennials did. We’ll get to the bigger picture, don’t worry. But first, more numbers.
Real weekly pay – which is adjusted with the economic inflation of that time – for those born in the late 1990s was reportedly 12% higher than 80s babies at the same age. Those with birth years in the 2000s are said to be earning more than any generation going back to the 1950s.
The gains are most dramatic at the lowest end of the scale. Workers in the bottom 10% of earners saw their pay rise by 36% between 2012 and 2025, helped in large part by increases to minimum wage.
The rebound is not limited to the lowest paid, either. Across 22 to 29-year-olds, hourly pay has apparently risen 15% after inflation, far outpacing the 4% growth seen by workers in their 30s.
What’s with all the nihilism from UK Gen Zers then? Is it just self-indulgent, pick me energy?
Absolutely f*cking not. You’d naturally assume that having a beefier wage packet makes you better off, but the stats don’t account for relativity – even if the wages are adjusted for inflation and dubbed ‘real.’
Take rent for example. When millennials born in the late 80s were 24, average rent in Britain was about £793 a month. In London it was £1,343. Today, average rent in the UK is approximately £1,442, rising to £2,294 in the capital. Over a year, that means a Gen Zer will have paid around £7,800 or £11,400 more than millennials did. Still celebrating?
Then there’s housing. A typical house costs roughly 7.6 times the annual pay of a full time worker, and that ratio rises to 10.6 in London. Should you wish to regularly fill the cupboards and fridge in said house, food is also 30.5% more expensive than in 2022.
