structural change

Millennials earning less than their fathers

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relaxing_cash_1600_wht_7397Recent research has shown that by the time millennial men reach 30 they are earning about £1,500 a year less than their fathers were. The same doesn’t apply to women.

The Resolution Foundation think tank has warned the government that they must respond to the pent-up frustration of this generation which earned less than Generation Xers (born 1960-80).

The long-held belief that each generation should do better than the last is under threat. Millennials today are the first to earn less than their predecessors“.

It’s not so surprising when you think about. Although the think tank blames the shift to higher skilled roles that’s not the only factor at work.

Globalisation has meant many jobs are off-shored or contracted out to low-cost countries, structural change and the reduction in traditional male jobs in manufacturing, mining, and steel, better educated women competing in the job market, and of course increased automation – of which there is more to come.

Another factor has been the loss of middle management jobs through de-layering thereby reducing opportunities for promotion, exacerbated by older workers staying at work longer, either to eke out their pensions or to keep themselves active. again slowing down job progression.

So it is what it is. Damian Green, the work and pensions minister told Age UK that a generational war was futile. Everyone gets old some day and “ultimately you don’t help young people by impoverishing older people”.

Maybe we just have to recalibrate our thinking and modify our expectations.