Research conducted by the Institute for Fiscal Studies (IFS) and the Resolution Foundation has revealed that Generation Z workers in the UK are earning more than their millennial predecessors, but are still struggling with the high cost of housing.
The study, which examined data from over 30,000 workers, found that Gen Z workers are earning around 5% more than millennials in similar roles.
However, despite the increase in earnings, many Gen Z workers are opting to stay at home with their parents rather than face the high costs of renting or buying a property.
The research highlights the ongoing issue of affordability in the UK housing market, with many young workers struggling to save for deposits or afford monthly mortgage payments.
The study's lead author, Dr. Thomas Pope of the IFS, stated: 'Young people are earning more than their predecessors, but the gap between what they earn and the cost of housing is growing.'
The findings of the study have significant implications for UK policymakers, who must address the issue of affordability in the housing market in order to support the next generation of workers.