Jump to content
House Price Crash Forum
Sign in to follow this  
Sancho Panza

Millennials May Be First To Earn Less Than Previous Generation

Recommended Posts

Guardian 18/7/16

'Britain’s current young generation earned £8,000 less during their 20s than their predecessors and are at risk of being the first cadre of workers in modern times to see their lifetime earnings fall, according to new research.

A report by the Resolution Foundation highlighting the UK’s growing intergenerational divide showed that millennials, who are aged between 15 and 35, fared significantly worse than their parents in Generation X during their first years of employment.

The study found that the deep recession of 2008-9 and the subsequent slow recovery was only partly responsible for the pay penalty suffered by millennials, with earnings for young people being squeezed even before the start of the financial crisis.

Looking at the pay of a typical 25-year-old the report found that older millennials, who are now in their early to mid-30s and therefore turned 25 before the financial crisis hit, were the first workers to earn less than those born five years before them.

It added that younger millennials who entered work during or after the financial crisis will have had their pay squeezed even harder and could have their prospects permanently blighted as a result.

The report looked at how three separate generations had fared: the baby boomers born in the late 1940s to early 1960s, their children in Generation X and millennials.

It found that even in an optimistic scenario, in which the future pay of millennials improved rapidly after a slow start and followed the same path as the baby boomers, the lifetime earnings of current young people would be around £890,000. This would limit their generational pay progress to just 7% over generation X – a third of the size of the pay progress that generation X are set to enjoy over the baby boomers.

But in a more pessimistic scenario, in which the future pay of millennials instead followed the path of generation X, lifetime earnings would be cut to £825,000. This would make the millennials the first ever generation to face a generational pay penalty by earning less than their predecessors over the course of their working lives.

The Resolution Foundation said a pessimistic scenario could emerge if the short-term economic outlook worsened as a result of Brexit, the weak productivity outlook predicted by the Office for Budget Responsibility earlier this year persisted, and if pay growth continued to fall behind productivity gains, as it has done for much of the last two decades.

It warned that the impact of earning less coincided with a bleaker outlook for home ownership, with baby boomers 50% more likely to be paying a mortgage on their own property by the time they were 30. Meanwhile the shift towards renting and higher rents meant that at 30 millennials had paid £44,000 more on rent than baby boomers.

Torsten Bell, director of the Resolution Foundation, said: “Generational inequality risks becoming a new inequality for our times, and nowhere is that clearer than on pay. We’ve taken it for granted that each generation will do much better than the last – earning more and enjoying a higher standard of living. But that approach risks looking complacent given the realities of recent years and prospects for the future.”

“Far from earning more, millennials have earned £8,000 less during their 20s than the generation before them. The financial crisis has played a role in holding millennials back, but the problem goes deeper than that.”

Share this post


Link to post
Share on other sites

And yet they'll still be more concerned with campaigning for the rights of immigrants, blgt's, benefits claimants etc etc rather than worrying about their own circumstances.

They seem to have been brainwashed into being the polar opposite of the boomers.

Share this post


Link to post
Share on other sites

And yet they'll still be more concerned with campaigning for the rights of immigrants, blgt's, benefits claimants etc etc rather than worrying about their own circumstances.

They seem to have been brainwashed into being the polar opposite of the boomers.

I'm 29. Being mollycoddled and failure to fly the nest warps your worldview I suspect. It's generally not our fault, a home/pension are utterly out of reach to most of us even if boomer wages were maintained, so why bother?

Share this post


Link to post
Share on other sites

And yet they'll still be more concerned with campaigning for the rights of immigrants, blgt's, benefits claimants etc etc rather than worrying about their own circumstances.

They seem to have been brainwashed into being the polar opposite of the boomers.

Only took 2 replies to get to victim blaming, impressive.

In case you missed it, in the last 15 months the Millennials wiped out the Lib Dems at the ballot box and decapitated the Labour Right who have held that party for the last 20 years.

Edited by Dorkins

Share this post


Link to post
Share on other sites

Only took 2 replies to get to victim blaming, impressive.

In case you missed it, in the last 15 months the Millennials wiped out the Lib Dems at the ballot box and decapitated the Labour Right who have held that party for the last 20 years.

Yes, and installed an opposition that is obsessed with campaigning for the rights of immigrants, blgt's, benefits claimants etc etc rather than worrying about the circumstances of British young people.

Share this post


Link to post
Share on other sites

Only took 2 replies to get to victim blaming, impressive.

In case you missed it, in the last 15 months the Millennials wiped out the Lib Dems at the ballot box and decapitated the Labour Right who have held that party for the last 20 years.

Decapitated Labour full stop more like... Even Owen Jones is slowly giving up on Corbynism now.

Share this post


Link to post
Share on other sites

To paraphase the bible..''There will always be poor amongst the world, but you might not always have the Uk as it is now. Trying to save a few million from the several billion poor who are pathetically struggling in the third world is the height of stupidity and inequitous for the billions left behind. Especially as all the resourses are then spent on housing the few here, and those few million are the most able and least in need of help throughtt heir ability to scale fences and seas in dodgy craft. Young men.

Meanwhile the main losers from mass immigration are the young here.

It isn't even a race issue , it's a population issue here on a tiny island. But the Establishment and Metro elite have their agenda and the young have fallen in line.

Edited by crashmonitor

Share this post


Link to post
Share on other sites

A lot of people here have talked about the divide between boomers and millennials. I admit that for a long time, that I myself shrugged that concern off. I always thought that hard work and a bit of gumption would give young people the chance to progress both financially and socially. Today, more than ever, I am not convinced that is not the case. The Wall Street Journal had a very good graph that illustrated the situation that young people in Western economies have found themselves in. Their incomes are basically static or falling, while the incomes of those above them and below them have increased.

capture31.png

Things are likely to only get worse for young people as well. Look at Theresa May and her cabinet appointees, Theresa herself is 59, David Davis is 68, Phil Hammond is 60, etc. The people with their hands on the levers are all basically pensioners - whose interests do you think they will be looking after first? The pensioners in power will look after the pensioners who voted them in. If you are young, then you will get whatever scraps are leftover, assuming any scraps will be left.

I think that the mainstream media, which is owned and run by wealthy older people understand this. You look at the way that Bernie Sanders and Jeremy Corbyn are getting battered in the media. This tiny cabaal of people at the top who are terrified of these people and are actively trying to destroy them. After all, it's the elite who stand to lose the most here. Also, when I talk about elite here, I mean the kind of person who was wealth of at least £1M outside of their home. The people who make millions every year from stocks, bonds and property, but typically only pay a tax rate in the teens (assuming they aren't non resident in which they pay 0%). What's truly remarkable is how these people who control such vast wealth have everyone else squabbling amongst themselves for scraps. They have played a blinder in managing to remain under the parapet for so long while their wealth has increased exponentially.

Share this post


Link to post
Share on other sites

Yes, and installed an opposition that is obsessed with campaigning for the rights of immigrants, blgt's, benefits claimants etc etc rather than worrying about the circumstances of British young people.

Love this framing of the young and political left as SJWs.. Was it invented by Katie Hopkins or some other caricature?

Share this post


Link to post
Share on other sites

A lot of people here have talked about the divide between boomers and millennials. I admit that for a long time, that I myself shrugged that concern off. I always thought that hard work and a bit of gumption would give young people the chance to progress both financially and socially. Today, more than ever, I am not convinced that is not the case. The Wall Street Journal had a very good graph that illustrated the situation that young people in Western economies have found themselves in. Their incomes are basically static or falling, while the incomes of those above them and below them have increased.

capture31.png

Things are likely to only get worse for young people as well. Look at Theresa May and her cabinet appointees, Theresa herself is 59, David Davis is 68, Phil Hammond is 60, etc. The people with their hands on the levers are all basically pensioners - whose interests do you think they will be looking after first? The pensioners in power will look after the pensioners who voted them in. If you are young, then you will get whatever scraps are leftover, assuming any scraps will be left.

I think that the mainstream media, which is owned and run by wealthy older people understand this. You look at the way that Bernie Sanders and Jeremy Corbyn are getting battered in the media. This tiny cabaal of people at the top who are terrified of these people and are actively trying to destroy them. After all, it's the elite who stand to lose the most here. Also, when I talk about elite here, I mean the kind of person who was wealth of at least £1M outside of their home. The people who make millions every year from stocks, bonds and property, but typically only pay a tax rate in the teens (assuming they aren't non resident in which they pay 0%). What's truly remarkable is how these people who control such vast wealth have everyone else squabbling amongst themselves for scraps. They have played a blinder in managing to remain under the parapet for so long while their wealth has increased exponentially.

Yes but Nate likes to spend his free time brewing craft cola and trimming his beard. If only he worked harder and wasn't concerned about immigrants...

Share this post


Link to post
Share on other sites

A lot of people here have talked about the divide between boomers and millennials. I admit that for a long time, that I myself shrugged that concern off. I always thought that hard work and a bit of gumption would give young people the chance to progress both financially and socially. Today, more than ever, I am not convinced that is not the case. The Wall Street Journal had a very good graph that illustrated the situation that young people in Western economies have found themselves in. Their incomes are basically static or falling, while the incomes of those above them and below them have increased.

capture31.png

Things are likely to only get worse for young people as well. Look at Theresa May and her cabinet appointees, Theresa herself is 59, David Davis is 68, Phil Hammond is 60, etc. The people with their hands on the levers are all basically pensioners - whose interests do you think they will be looking after first? The pensioners in power will look after the pensioners who voted them in. If you are young, then you will get whatever scraps are leftover, assuming any scraps will be left.

I think that the mainstream media, which is owned and run by wealthy older people understand this. You look at the way that Bernie Sanders and Jeremy Corbyn are getting battered in the media. This tiny cabaal of people at the top who are terrified of these people and are actively trying to destroy them. After all, it's the elite who stand to lose the most here. Also, when I talk about elite here, I mean the kind of person who was wealth of at least £1M outside of their home. The people who make millions every year from stocks, bonds and property, but typically only pay a tax rate in the teens (assuming they aren't non resident in which they pay 0%). What's truly remarkable is how these people who control such vast wealth have everyone else squabbling amongst themselves for scraps. They have played a blinder in managing to remain under the parapet for so long while their wealth has increased exponentially.

In the modern day context I think 60 is pushing it to describe somebody as a pensioner. Indeed how some of the more fit 60 year old pensioners took the state pension up until as recently as 2010 at age 60 and still kept a straight face God only knows. It's really going to puzzle historians in 100 years time how it managed to last that long...an age when you ran the country and set world records for consecutive marathons (ie a marathon every day of the year).

Share this post


Link to post
Share on other sites

Yes, and installed an opposition that is obsessed with campaigning for the rights of immigrants, blgt's, benefits claimants etc etc rather than worrying about the circumstances of British young people.

Yes, Corbyn has not been impressive on the economic situation of the young. None of the 2015 Labour leadership candidates had much to say on this.

Maybe he will get better, maybe not. If not then he too can be ejected.

Share this post


Link to post
Share on other sites

That single fact ( which I guess most of knew was happening ) destroys the buy a house for the max you can afford and your wage increases/inflation will pay it off

Another nail in the coffin for the UK housing bubble

Share this post


Link to post
Share on other sites

Yes, Corbyn has not been impressive on the economic situation of the young. None of the 2015 Labour leadership candidates had much to say on this.

Maybe he will get better, maybe not. If not then he too can be ejected.

He's anti HPI which is a start, which polarates himself from pretty much everyone else on his party.

Share this post


Link to post
Share on other sites

. After all, it's the elite who stand to lose the most here. Also, when I talk about elite here, I mean the kind of person who was wealth of at least £1M outside of their home.

Thats not elite really. £500k in a pension pot (state employees when converted to a 'pot' would have a lot more), couple of isa's perhaps the odd old car/motorbike/watch there are many people who could tot that up but not sure it makes them elite. Thats another level.

I think the comment that because someone is older they have no empathy/sypmathy with another generation is rubbish frankly. Exactly the same as Leadsom saying she was a better leader because she had children.

A younger generation has been running the country for a while now the fabled Nottng Hill set and not that pretty for youngsters or are we just down to semantics i.e the wrong sort of a younger generation.

Plenty of the younger generation are far more right wing than the media suggest and equally older generations are probably more philanthropic and socialist than portrayed.

Ultimately many of us will take a risk with our money/investments to help our children in this flawed system, its not perfect but we will naturally fight enforced redistribution since it never works.

Share this post


Link to post
Share on other sites

He's anti HPI which is a start, which polarates himself from pretty much everyone else on his party.

I agree it's a start (and better than the pro-HPI sociopaths who have been running the country for decades and are trying to unseat him now), but politicians are supposed to have policies, not just be opposed to bad things.

Edited by Dorkins

Share this post


Link to post
Share on other sites

Yes, Corbyn has not been impressive on the economic situation of the young. None of the 2015 Labour leadership candidates had much to say on this.

Maybe he will get better, maybe not. If not then he too can be ejected.

I was rather surprised that Corbyn claimed that Cameron's biggest achievement was something to do with an assylum claim or something of that nature in his final tribute in the last PMQs.....rather bizarre that these things should matter so much to him. Edited by crashmonitor

Share this post


Link to post
Share on other sites

Not surprised at all. Pay rates, conditions of work, education opportunities have all declined substantially.

The younger generation have it much harder than mine did at the same age. From what I can see a lot of youngsters are working extremely hard for little return.

Share this post


Link to post
Share on other sites

A younger generation has been running the country for a while now the fabled Nottng Hill set and not that pretty for youngsters or are we just down to semantics i.e the wrong sort of a younger generation.

The Notting Hill set are GenX, born mid-1960s to mid-1970s. Amazingly GenX senior politicians managed to screw up so badly that power actually reverted to the generation above them in both the Conservative and Labour parties.

Share this post


Link to post
Share on other sites

Thats not elite really. £500k in a pension pot (state employees when converted to a 'pot' would have a lot more), couple of isa's perhaps the odd old car/motorbike/watch there are many people who could tot that up but not sure it makes them elite. Thats another level.

I think the comment that because someone is older they have no empathy/sypmathy with another generation is rubbish frankly. Exactly the same as Leadsom saying she was a better leader because she had children.

A younger generation has been running the country for a while now the fabled Nottng Hill set and not that pretty for youngsters or are we just down to semantics i.e the wrong sort of a younger generation.

Plenty of the younger generation are far more right wing than the media suggest and equally older generations are probably more philanthropic and socialist than portrayed.

Ultimately many of us will take a risk with our money/investments to help our children in this flawed system, its not perfect but we will naturally fight enforced redistribution since it never works.

When referring to an elite, I would exclude the pension pot as well. When I talk about a person in the elite, I am referring to someone who does not work a regular job and uses income/appreciation from assets to live off of. That kind of person is disproportionately under-taxed in most western economies.

Share this post


Link to post
Share on other sites

Not surprised at all. Pay rates, conditions of work, education opportunities have all declined substantially.

The younger generation have it much harder than mine did at the same age. From what I can see a lot of youngsters are working extremely hard for little return.

+1 Don't think it's the educational opportunities more the corporate work opportunities. So much is made of how 9 out 10 people work in a small business's and yet my experience is they aren't great at building people's careers.

If you have worked in a corporate you will have seen best practice (and worst occasionally) in areas such as Appraisals, running projects, timesheets, holidays, training etc. So when you start your own thing or look for another role your standards are high.

Yet there seems a lack of these opportunities, I had passed through three pretty big corporates by the time I was 29, Lucas,IBM, Granada Plc. having left school at 16. Yes they had bad points, but you never worried if you were going to get paid, get trained, worked unfairly etc

Edited by Greg Bowman

Share this post


Link to post
Share on other sites

When referring to an elite, I would exclude the pension pot as well. When I talk about a person in the elite, I am referring to someone who does not work a regular job and uses income/appreciation from assets to live off of. That kind of person is disproportionately under-taxed in most western economies.

Got it and then we agree :)

Share this post


Link to post
Share on other sites

I'm 29. Being mollycoddled and failure to fly the nest warps your worldview I suspect. It's generally not our fault, a home/pension are utterly out of reach to most of us even if boomer wages were maintained, so why bother?

Good point

Share this post


Link to post
Share on other sites

Create an account or sign in to comment

You need to be a member in order to leave a comment

Create an account

Sign up for a new account in our community. It's easy!

Register a new account

Sign in

Already have an account? Sign in here.

Sign In Now
Sign in to follow this  

  • Recently Browsing   0 members

    No registered users viewing this page.

  • Next General Election   90 members have voted

    1. 1. When do you predict the next general election will be held?


      • 2019
      • 2020
      • 2021
      • 2022

    Please sign in or register to vote in this poll. View topic


×

Important Information

We have placed cookies on your device to help make this website better. You can adjust your cookie settings, otherwise we'll assume you're okay to continue.