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Shrinking salaries

17 : 02 : 2017 Millennials : Finance : Workplace Futures

UK – Millennial men are earning significantly less than their predecessors did at the same age, according to a new study.

  • The research was conducted by Resolution Foundation, a think tank that examines living standards in Britain
  • Millennial men are more likely than to have accepted lower-paid jobs than male Generation Xers
  • The findings undermine the belief that each generation should do better financially than the last

While the news that Millennial men are less well off financially than their parent’s generation might not be surprising, the new research attributes a specific figure to back up the claim.

Torsten Bell, director of the Resolution Foundation, announced during the annual Grigor McClelland lecture at Manchester Business School that Millennial men aged between 22 and 30 earned a cumulative total of £12,500 ($15,500, €14,500) less than the previous generation.

The reduction in salary is driven by a variety of factors, including an increase in young men accepting lower-paid positions that traditionally would have been carried out by women. Since 1993, the number of Millennial men working part-time in low-paid jobs such as admin, service and sales has increased fourfold, according to the study.

The number of young men working in bars and restaurants has risen from 45,000 in 1993 to 130,000, while the number of young men working in retail has almost doubled from 85,000 to 165,000.

‘In part this reflects Millennial men’s misfortune to come of age in the midst of a huge financial crisis, but there are wider economic forces that have seen young men in particular slide back,' says Bell.

The Big Picture

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