Gen Z’s Pay Surpasses Millennials, Yet NEET Crisis Looms

Sunday, June 21, 2026

Young workers in the UK born in the late 1990s now earn about 12% more on average at age 24 than millennials did at the same age, reaching the highest inflation-adjusted wages since those born in the 1950s. However, the persistence of around one million young people not in employment, education, or training (NEET) highlights ongoing challenges that could limit broader economic improvements for Generation Z.

Young workers in the United Kingdom born in the late 1990s are now earning more, on average, than their millennial counterparts did at the same age, according to new analysis from the Resolution Foundation. This latest data indicates that the pay of 24-year-olds today surpasses that of any comparable group since those born in the 1950s, marking a notable shift from previous concerns over stagnant real wage growth among younger generations.

The findings reveal that when adjusted for inflation, the average weekly earnings of individuals born in the late 1990s are approximately 12% higher than those born in the late 1980s. This trend suggests an improvement in financial prospects for members of Generation Z, a cohort often characterised by the burden of student debt and limited job opportunities. The increased wages may signal a positive departure from the economic challenges faced by millennials in their early careers.

Despite these encouraging figures, experts warn of ongoing challenges that could temper this progress. Charlie McCurdy, a researcher at the Resolution Foundation, highlighted risks associated with the broader economic environment, including potential price increases and slower growth stemming from instability in the Middle East. More pressing, according to McCurdy, is the sizeable number of young people who remain disconnected from the labour market and education.

Currently, about one million individuals aged 16 to 24 fall into the category of NEET—those not in employment, education, or training. This group represents a significant barrier to fully harnessing Gen Z’s potential in the workforce. McCurdy emphasised the importance of addressing the NEET issue to ensure that more young people can begin their careers and continue to improve their living standards relative to previous generations.

The Resolution Foundation’s report, expected this week, will likely prompt renewed focus on policies aimed at reducing youth disengagement and supporting young workers amid evolving economic challenges. While wage gains for employed 24-year-olds mark progress, the scale of youth inactivity underscores the need for targeted interventions to promote inclusive economic participation for the entire generation.