It’s not news that the youth of today probably earn a lot less than their parents did at their age, but new research has specified exactly how much: £8000.
Yep, The Resolution Foundation did their digging and found that people aged 15 to 35 earn £8000 less than the older generation during their first years of employment. Depressing, we know.
Apparently it’s not all down to 2008’s recession, either. In fact, the study revealed that young people’s earnings were already significantly lower than their predecessors before the financial crisis hit.
But all is not lost.
David Willets, executive chair of the Resolution Foundation and Intergenerational Commission says the issue is slowly but surely becoming a priority.
“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,” he added.
Newly appointed Prime Minister Theresa May also acknowledged the disadvantaged younger generation, describing the situation as a “more prosperous older generation and a struggling younger generation.”
So what are they going to do about it? Despite insinuating that the effects of Brexit may result in an even bigger decrease in young people’s wages (no, we didn’t think that was possible either), the Resolution Foundation assured us that further investigations will be undertaken and has called for a new generational ‘social contract’ to be a main priority in the Prime Minister’s economic policy.
Altogether now, in faith we trust, in faith we trust…