Generation Z's early career earnings are giving cause for optimism – their real weekly wages at age 24 have shot up by 12% compared to millennials in the same position, according to a new study from the Resolution Foundation. This welcome trend marks a significant departure from the stagnant wage growth that defined millennials' formative years, often launched during the turbulent financial climate of the late 2000s.
The analysis reveals that those born in the early 2000s are earning more at this crucial life stage than any generation since the post-war boom of the 1950s. Key to this improved financial outlook has been the substantial increase in the minimum wage, which has seen real pay rise by a whopping 36% for the lowest-paid 10% since 2012.
Workers aged 22-29 on median earnings have also benefited from hourly pay growth of 15% between 2012 and 2025 – a marked contrast to the meagre 4% increase enjoyed by those in their 30s over the same period. While this is undoubtedly good news for Gen Z, the Resolution Foundation warns that these gains are fragile, vulnerable to future inflationary pressures and economic downturns.
Furthermore, the thinktank highlights a worrying trend: nearly one million young people aged 16-24 are now classified as NEETs (not in employment, education, or training). This 'Britain's Neet crisis' poses a significant long-term challenge for Gen Z, prompting calls for government action to prevent a 'lost generation' and ensure all young people have the opportunity to kickstart their careers.
Commenting on the findings, Charlie McCurdy, senior economist at the Resolution Foundation, noted: "The living standards stagnation of the millennial generation has been well documented. Many speculated that Gen Z would suffer a similar fate, but with the oldest members now several years into their working lives, we're seeing a mini pay rebound."