With the country slowly returning to more prosperous times it seems the 2008 recession will have long term effects for current young professionals under 30. Statistics released by the Institute of Fiscal Studies has shown that the recession has hit younger generations more so than the rest, with real incomes falling by 13% since the recession began.
The survey highlighted that not only was there a greater real wage fall in this category but that generally the economy may continue to struggle into future years. Currently individuals in their 20s are more likely to be unemployed than any other age group and the trend does not seem to be likely to change any time soon. In general the statistics show that older generations appear to have been relatively untouched by the recession with the real wage and employment rate decreasing at a much slower pace than that of those under 30s.
In numbers the employment of young adults fell by 4% compared to those aged 31-51, which in contrast to popular belief actually remained similar to pre-recession times. Typical household incomes for those under 30 fell by 13% between 2008 and 2013, in comparison to a drop of 7% for those in the upper brackets. In addition to this those under the age of 30 who had found employment, found that overall their real salaries had decreased by 15% contrasting the 6% of 31-39 year olds. The report also showed that a quarter of adults under 30 still had to live with their parents because they simply could not afford to move out.
The biggest question that the statistics highlight is whether younger generations will be more negatively affected in the long term by the current climate. If the difficult start is continued into the future we may see an increase in levels of personal insolvencies within this generation potentially borrowing more to keep up with social pressures and the rising cost of living.