Gen Z earning more than millennials did at the same age, says thinktank

Gen Z’s early careers are more financially rewarding than those of Millennials, research suggests.Those typically born between 1997 to 2012 are experiencing a mini-rebound in pay packets, according to the research by the Resolution Foundation, in a seeming contrast to how the previous generation entered the job market.Millennials – those born between the early 1980s and mid-1990s – are the first generation not to have enjoyed higher disposable incomes than previous generations, according to the thinktank. The researchers added that this setback was partly driven by Millennials’ careers kicking off at around the time of the 2008 financial crisis, and the long stagnation in real wage growth that has taken place ever since.However, a preview of a report due on Thursday show the Resolution Foundation’s latest numbers suggest that real weekly pay at age 24 of those born in the late 1990s was 12% higher than for cohorts born in the late 1980s.At the age of 24, those born in the early 2000s are also earning more than any other generation going back to those born in the 1950s, according to the study.Charlie McCurdy, senior economist of the Resolution Foundation, said: “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.“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.”The report found that the lowest-paid – those in the bottom 10% of earners – enjoyed the biggest lift in pay due to an escalation in the minimum wage, especially since 2016. Their pay rose 36% in real terms between 2012 and 2025.Further up the pay scale, those workers aged 22-29 on median earnings saw their hourly pay grow by 15% over the same period compared to 4% for those in their 30s and 11% for all employees.The study cautioned, however, that the “good news story for Gen Z is already under threat”, as real wages may be about to fall because of pressures including the higher prices and weaker economic growth resulting from war in the Middle East.Also, the number of 16- to 24-year-olds not in employment, education or training – the so-called Neets – has now reached about 1 million. The former Labour minister Alan Milburn warned last month that Britain is at risk of a 25% rise in the number of Neets to 1.25 million by the early 2030s, without urgent government action to avoid a “lost generation”.“For a significant share of younger members of Gen Z, their careers have not got off the ground at all,” the Resolution Foundation added. “Britain’s Neet crisis presents a huge, long-term challenge for Gen Z, and tackling it should be a top priority for the government.”