by Felicity Collier
YOUNG workers’ wages have stalled on an unprecedented scale, a think tank warns today.
Workers born after 1980 earn around £40 a week less by the time they reach the age of 30 than those born 10 years earlier, according to the Resolution Foundation.
But workers born in the early 1950s to the late ’70s enjoyed higher wages in their twenties than the generations before them.
The Resolution Foundation claims that the financial crisis affected the so-called millennials’ salaries, hitting at the point in their careers when pay progression should have been rising.
There has also been a shift to low-pay work, while the number of employers offering pay rises to long-serving workers has declined.
Young people are said to be cautious about moving jobs as they are seeking security which also causes them to miss out on higher pay.
“The stalled progress on pay for young people today is unprecedented and its causes run far deeper than the recession,” the Resolution Foundation’s policy analyst Laura Gardiner said.
“The pay of older millennials in their early thirties actually started to slow before the crisis hit.
“One of the most striking shifts in the labour market has been young people prioritising job security and opting to stick with their employer rather than move jobs.
“This may be understandable in a jobs market characterised by rising temporary work and zero-hours contracts.”
TUC general secretary Frances O’Grady said: “Many young workers are getting a raw deal at work, with large numbers trapped in low-paid, insecure jobs.
“The government should admit that ‘any old job’ is not good enough and start prioritising high-quality job creation.”