In its annual "intergenerational audit", the Resolution Foundation thinktank compared the fortunes of millennials - which it defined as those born between 1981 and 2000 - with their predecessors, including generation X (born between 1966 and 1980). The report found that after the 2008 financial crisis and ensuing recession, the long-running pattern that saw young people earn more on average than their parents did at the same life stage was broken.
The authors of the report wrote: "Millennials born in the late 1980s earned, on average, 8% less at age 30 than their counterparts from the generation X cohort when they were the same age." In the US, by contrast, recent strong income gains by younger workers have helped them catch up.
Sophie Hale, the thinktank's principal economist, said: "Young people across advanced economies were hit by the financial crisis, putting a stop to decades of progress.
Fifteen years on, this 'crisis cohort' are no longer young. And while many US millennials have bounced back, their counterparts in Britain are still wearing economic scars as they approach middle age."
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