Jakarta, ThedailyID — Generation Z is earning more than millennials did at the same age, according to a new study by UK-based think tank Resolution Foundation. Researchers say stronger real wage growth has helped improve Gen Z’s early career earnings.
The study focused on people born between 1997 and 2012. It found that Gen Z entered the workforce under stronger wage conditions than millennials.
By contrast, many millennials started their careers during the 2008 global financial crisis. They then experienced years of weak wage growth.
Resolution Foundation compared workers at age 24 across different generations. It found that people born in the late 1990s earned 12% more in real weekly wages than workers born in the late 1980s.
Meanwhile, people born in the early 2000s now earn more at age 24 than any generation since those born in the 1950s.
Senior economist Charlie McCurdy said stagnant living standards among millennials had shaped public debate for more than a decade. As a result, many expected Gen Z to face similar challenges.
“Now that the oldest members of Gen Z have spent several years in the workforce, the good news is they are seeing a modest recovery in earnings,” McCurdy said, as quoted by The Guardian.
The report also found that lower-income workers benefited the most from wage growth. Employees in the bottom 10% of the income distribution saw real wages increase by 36% between 2012 and 2025.
Researchers linked much of that increase to gradual rises in the UK’s minimum wage. The policy became more significant after 2016.
Meanwhile, workers aged 22 to 29 also posted solid wage gains. Their median hourly pay increased by 15% during the same period.
By comparison, workers in their 30s recorded only a 4% increase. Across the overall workforce, average real wages rose by 11%.
However, Resolution Foundation warned that Gen Z’s financial progress could slow. Inflation, rising living costs and weaker economic growth linked to conflict in the Middle East may reduce future real wage growth.
The report also highlighted another concern. The UK continues to see a growing number of young people who are not in employment, education or training, commonly known as NEETs.
The number of NEETs aged 16 to 24 has reached about one million. Former Labour minister Alan Milburn warned the figure could climb 25% to 1.25 million by the early 2030s unless the government takes stronger action.
Resolution Foundation described the NEET crisis as a major long-term challenge for part of Gen Z. The organization said many young people have yet to begin their careers. Therefore, it urged the government to make the issue a top priority.
