BRITAIN — Workers in Britain born in the late 1990s are earning more at age 24 than any cohort since those born in the 1950s, according to research from the Resolution Foundation. Real weekly pay for workers born in the late 1990s was 12% higher at age 24 compared to cohorts born in the late 1980s. The report defines Generation Z as individuals typically born between 1997 and 2012, while millennials are defined as those born between the early 1980s and mid-1990s.

Millennials were the first generation to not experience higher disposable incomes than preceding generations. This stagnation was partly influenced by their careers starting around the 2008 financial crisis.

Charlie McCurdy, a senior economist at the Resolution Foundation, said: "The living standards stagnation of the millennial generation has been well documented over the past decade. Many have speculated that the breakdown of generational progress has continued for gen Z too. But with the oldest members of gen Z now several years into their working lives, the good news is that they've enjoyed a mini pay rebound."

The largest pay increases were observed among the bottom 10% of earners, largely due to increases in the minimum wage, particularly since 2016. Pay for the lowest-paid workers rose 36% in real terms between 2012 and 2025. Hourly pay for workers aged 22-29 on median earnings grew by 15% during the same period, while hourly pay for workers in their 30s grew by 4%. Overall, hourly pay for all employees increased by 11% between 2012 and 2025.

Despite these pay increases, approximately 1 million 16- to 24-year-olds in Britain are not in employment, education, or training. The report notes that a large share of younger members of Generation Z have not yet begun their careers.