A new study by the Resolution Foundation found that young adults in the UK, called millennials, are still dealing with money problems from the 2008 financial trouble. Unlike young people in the US who are doing better, UK millennials are struggling to have as much money as older people.
Economic Scars from the 2008 Crisis
The Resolution Foundation looks at how much money different generations have. The study shows that after the 2008 financial trouble and the problems that came after, young people in the UK started earning less money than their parents did at the same age. It means that if you were born in the late 1980s, you had 8% less money at age 30 compared to people from Generation X at the same age.
UK Millennials Lagging Behind
In the US, even though the money trouble in 2008 made it hard for young people to earn more, they’ve been able to catch up. But in the UK, young people in their early 30s in 2021 were still earning 1% less money than those in the same age group in 2007.
Reasons for the Lag
The study says the reason for this difference is because wages (the money you get for your work) in the UK have not gone up much, especially for young people who went to university. University graduates aged 30-34 earned 16% less money each week between 2007 and 2023, while those who didn’t go to university earned 6% less.
Housing Challenges for UK Millennials
Houses cost a lot in the UK, making it hard for many young people to buy their own homes like their parents did. Although some things have gotten a bit better, young people are still behind. In 2000, 67% of young people aged 30-34 owned homes, but in 2021, only 47% did. In the US, it’s not as bad – 56% owned homes in 2000, and in 2021, it was 50%.
Impact on Living Standards
Because not many young people in the UK own homes, they often have to live in places they rent, and that can cost a lot of money. This makes it hard for them to have a good standard of living.
Conclusion: Hard Times for UK Millennials Show Need for Help
The study shows that young people in the UK are still having a tough time with money, especially because of the 2008 money problems. It’s important for leaders to find ways to help young people earn more, afford homes, and have a better life.
