The Lasting Impact of the 2008 Financial Crisis on UK Millennials

Hey there, did you know that UK millennials are still feeling the impact of the 2008 financial crisis? Yeah, it’s true! A recent study found that those in their early 30s have experienced a significant setback in terms of pay and living standards. Unlike their American counterparts, UK millennials are still struggling to catch up after the global financial crisis. The research revealed that millennials in the UK are earning no more than those born in the 1970s did at the same age. That’s over two decades of lost progress on pay! On the other hand, millennials in the US have seen their living standards improve, thanks to higher household incomes and better income growth. The study also highlighted that disposable incomes of US millennials in their early 30s were 21% higher in 2021 than their predecessors had at the same age in 2007. In contrast, incomes for the same group in the UK fell by 1% over this period. The report pointed out that the slower income progress for young people in the UK is due to a ‘more sluggish’ economic growth, resulting in lower overall income growth. It’s clear that UK millennials have experienced considerably less progress than their US counterparts. The lack of progress ultimately results from a stagnant UK economy, limiting prospects for pay and income progression. This has led to millennials in the UK getting a disproportionately low share of the rewards that have materialized. The principal economist at the Resolution Foundation, Sophie Hale, emphasized the need for meaningful growth in the UK and for policy decisions to recognize the importance of working for younger generations. It’s crucial to break the trend of income and wealth growth disproportionately benefiting older generations. The study’s findings shed light on the challenges faced by UK millennials and the urgent need for policies that support their economic well-being. It’s time to address the economic scars of the past and pave the way for a brighter future for the next generation. Let’s hope for positive changes that will benefit millennials and ensure a fairer and more prosperous future for all.