Millennial salaries set to pick up after period of low growth post-crash, says think tank
Millennial workers should be looking forward to an upturn in their pay packets after 10 years of "tepid" growth following the financial crash, according to an influential think tank.
Despite average wages increasing 2.6 per cent in the three months up to July, growth is currently just ahead of the inflation rate.
But a study from the Resolution Foundation suggests younger workers could be about to enjoy a period of wage growth, as starting salaries have risen for the first time in a decade, with those born between 1992 and 1995 earning an average salary of £299 a week.
Those who entered the job market during the financial crisis who were born in the early 1990s have been left significantly out of pocket, taking home similar earnings to those born 15 years ago when they were the same age, the report said.
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"Britain’s pay disaster was most acutely felt by those who entered the jobs market in the years during and since the financial crisis," said research director Laura Gardiner.
"This 15 years of lost pay growth is unprecedented, and raises concerns about the potential long-term ‘scarring’ effects of being stuck on low pay when starting out," Gardiner continued.
"Although still tepid, pay growth is now building, and should gain pace as today's 18 year olds begin careers over the coming years."
Housing market still 'broken'
However, in some areas Gardiner said the same problems of high rent and low home ownership will continue to effect younger millennials.
"The decades-long pattern of lower home ownership rates and higher housing costs through successive cohorts shows no signs of budging without substantial intervention," she said. "Many of these millennials will be entering a housing market that is broken – completely in the big cities – with rent providing a huge drag on their incomes."