A report from the Resolution Foundation indicates that Britons born since 1981 – known as the millennial generation – have suffered the second biggest financial hit in the developed world, topped only by Greece, according to the Guardian.
The report indicates a bleak picture across all developed countries, with the exception of the Nordic countries. Low salaries, unemployment and falling home ownership mean that millennials have experienced a financial reversal compared to the baby boomer generation.
Researchers also found that, when unemployment was removed as a factor, British millennials had experienced a more significant decline than young people in other countries.
The report states: “The scale of the pay squeeze for those aged under 30 is surpassed only by Greece.” In 2014, people born around 1980 earled 13% less than those born around 1970 had at the same age. In Greece, the figure was 25%.
The report says: “Generation-on-generation progress has been all but wiped out for millennials whose home ownership rate in their late 20s, at 33%, is half that for the baby boomers at the same age (60%).
“Falling home ownership for young people in their 20s is also found – albeit to a lesser extent – in Australia (a 12 percentage points fall from boomers to millennials) and the US (a six percentage point fall).”
The UK youth unemployment rate remains low, at around 9%, in contrast to levels of around 25% in countries to the south including Greece, Spain and Italy.
In most developed European countries, there is now a belief that young people will be worse off than their parents. The French are the most pessimistic, with only 10% believing they will fare better than their parents and 71% believing they will be worse off. The UK was fourth from bottom in the survey, with 22% of young people believing they will be better off than their parents and 50% saying they will fare worse.