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

Jakarta, CNBC Indonesia - A study has found that Generation Z (Gen Z) has better financial conditions compared to Millennials when they were at the same age. The UK-based Resolution Foundation found that Gen Z, born between 1997 and 2012, are enjoying real wage increases at the start of their careers. This contrasts with Millennials, who entered the workforce during the 2008 global financial crisis and a prolonged period of stagnant wage growth. In its report, the Resolution Foundation noted that the real weekly earnings of 24-year-old workers born in the late 1990s were 12% higher than those of the same age group born in the late 1980s. Furthermore, those born in the early 2000s and now around 24 years old are earning more than any generation since those born in the 1950s. Senior Resolution Foundation economist Charlie McCurdy said the stagnation in living standards experienced by Millennials has been a concern for the past decade. “Many suspected that the break 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 modest recovery in earnings,” he said, as quoted by the Guardian on Thursday (24/6/2026). The report also showed that the lowest-paid workers enjoyed the largest pay increases. Workers in the bottom 10% of the income distribution experienced a 36% rise in real wages between 2012 and 2025. This increase was driven by gradual rises in the minimum wage, particularly since 2016. Meanwhile, workers aged 22 to 29 with median incomes saw their hourly pay rise by 15% over the same period. In comparison, workers in their 30s recorded only a 4% increase, while the average increase across all workers was 11%. Despite this, the Resolution Foundation cautioned that the positive trend for Gen Z could face new challenges. Inflationary pressures from rising prices and an economic slowdown triggered by conflict in the Middle East risk suppressing real wage growth again. Additionally, the UK is facing a growing number of young people who are not in employment, education, or training (NEET). The number of NEETs aged 16 to 24 is currently estimated to have reached around 1 million. Former Labour Party minister Alan Milburn has even warned that this figure could surge by 25% to 1.25 million by the early 2030s if the government fails to take action. The Resolution Foundation considers the NEET crisis a serious long-term challenge for part of Gen Z. According to the institution, many young people have not even managed to start their careers yet. “For many younger members of Gen Z, 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 priority for the government,” the report stated.