Gen Z Earns More Than Millennials at the Same Age, Study Finds

A study has found that Generation Z (Gen Z) possesses better financial conditions compared to Millennials when at the same age. The UK-based institution, Resolution Foundation, found that Gen Z, born between 1997 and 2012, is enjoying real wage increases at the start of their careers.

This situation contrasts with Millennials, who entered the workforce amidst the 2008 global financial crisis and a long period of stagnant wage growth. In its report, the Resolution Foundation noted that the real weekly wages of 24-year-old workers born in the late 1990s were 12% higher than those in the same age group born in the late 1980s.

Furthermore, those born in the early 2000s, currently around 24 years old, are recorded as earning higher incomes than any other generation since the 1950s birth cohort.

Charlie McCurdy, senior economist at the Resolution Foundation, stated that the stagnation of living standards experienced by Millennials has been a concern for the last decade. “Many assumed that the breakdown in intergenerational progress would also continue for Gen Z. However, the oldest members of Gen Z have now been in the workforce for several years, and the good news is they are enjoying a small-scale income recovery,” he said, as quoted by the Guardian.

The report also indicates that the lowest-earning group of workers is enjoying the largest salary increases. Workers in the bottom 10% of income distribution experienced a 36% increase in real wages between 2012 and 2025.

This increase was driven by gradual minimum wage hikes, particularly since 2016. Meanwhile, workers aged 22 to 29 with median incomes saw a 15% increase in hourly wages over the same period. In comparison, workers in their 30s only recorded a 4% increase, while the average for all workers rose by 11%.

Nevertheless, the Resolution Foundation warned that this positive trend for Gen Z could face new challenges. Inflationary pressures due to rising prices and economic slowdowns triggered by conflicts in the Middle East risk suppressing real wage growth once again.

Additionally, the UK is facing the issue of an increasing number of young people who are not in employment, education, or training, known as NEET. Currently, the number of NEET individuals aged 16 to 24 is estimated to have reached approximately 1 million people.

Former Labour Party Minister Alan Milburn warned that this figure could surge by 25% to 1.25 million by the early 2030s if the government does not take immediate action.

The Resolution Foundation considers the NEET crisis to be a serious long-term challenge for some members of Gen Z. According to the institution, many young people have not yet even managed to start their careers.

“For the majority of young Gen Z members, their careers have not even truly begun. The NEET crisis in the UK is a major long-term challenge for Gen Z, and addressing it must be a top government priority,” the report stated.