Early careers for Generation Z are proving more financially lucrative than those of millennials, with the younger cohort benefiting from a “mini-rebound” in earnings, according to new research.
A study by Resolution Foundation indicates that those born between 1997 and 2012 are seeing a shift in fortune compared to the preceding generation, reports The Guardian.
Millennials, born between early 1980s and mid-1990s, were the first group in decades not to experience higher disposable incomes than their predecessors, a setback linked to starting careers during financial crisis and enduring subsequent wage stagnation.
The foundation’s data shows that real weekly pay for those born in the late 1990s was 12% higher at age 24 than for those born in the late 1980s. Individuals born in early 2000s are now earning more at the age of 24 than any generation dating back to the 1950s.
Charlie McCurdy, a senior economist at Resolution Foundation, noted that while many feared generational progress had halted, the oldest members of Gen Z have instead seen their pay recover several years into their working lives.
The most substantial gains were recorded among the lowest-paid workers. The bottom 10% of earners saw their pay climb by 36% in real terms between 2012 and 2025, largely due to successive increases in the minimum wage since 2016.
Similarly, median earners aged 22-29 experienced a 15% rise in hourly pay over the same period, significantly outperforming the 4% growth seen by workers in their 30s and the 11% average for the general workforce.
However, the report warns that this progress is currently “under threat”. Rising prices and sluggish economic growth, exacerbated by conflict in the Middle East, could lead to a decline in real wages.
Simultaneously, the number of young people aged 16 to 24 not in employment, education, or training (Neets) has reached approximately 1 million. Former Labour minister Alan Milburn warned last month that Britain faces a “lost generation” if the number of Neets rises to a projected 1.25 million by the early 2030s without urgent government intervention.
The Resolution Foundation added that for many younger members of Gen Z, careers have failed to launch entirely. The organization described the Neet crisis as a significant long-term challenge and urged the government to make addressing it a top priority.
