New research suggests that Britain’s millennials earn £8,000 less during their 20s than their predecessors and will be the first generation of workers to experience a fall in their lifetime-earrings.
The Resolution Foundation released a report highlighting a growth in the UK’s intergenerational divide as it showed the current generation aged 15 to 35, are far worse off than their parents and those in the previous generation during their first years of employment.
Although you may think that the cuts in our pay checks are a result of the deep recession of 2008-9 and the country’s slow recovery which is true to an extent, the study reveals that the earnings of young people were already becoming significantly lower even before the financial crisis.
“Fairness between the generations is something public policy has ignored for too long. But it is rising up the agenda with the prime minister, politicians of all parties, business leaders and others rightly identifying it as a growing challenge,” said David Willets, executive chair of the Resolution Foundation and Intergenerational Commission.
New Prime Minister Theresa May also warned about the issue of a disadvantaged younger generation last week, describing it as a “more prosperous older generation and a struggling younger generation”.
The Resolution Foundation, who believes the effects of Brexit will course an even bigger decrease in young people’s wages, is launching further investigations into the issue and has called for a new generational “social contract” to be a main priority in the Prime Minister’s economic policy.
SOURSE: THE INDEPENDENT