Millennials 'earn a fifth less' than their baby boomer parents did at their age
Young people's net worth half that of older generation
Your support helps us to tell the story
From reproductive rights to climate change to Big Tech, The Independent is on the ground when the story is developing. Whether it's investigating the financials of Elon Musk's pro-Trump PAC or producing our latest documentary, 'The A Word', which shines a light on the American women fighting for reproductive rights, we know how important it is to parse out the facts from the messaging.
At such a critical moment in US history, we need reporters on the ground. Your donation allows us to keep sending journalists to speak to both sides of the story.
The Independent is trusted by Americans across the entire political spectrum. And unlike many other quality news outlets, we choose not to lock Americans out of our reporting and analysis with paywalls. We believe quality journalism should be available to everyone, paid for by those who can afford it.
Your support makes all the difference.Millennials earn a fifth less than their baby boomer parents did at their age despite being better educated, according to new analysis.
The advocacy group Young Invincibles concluded that while the younger age group's $40,581 (£33,309) median household income is 20 per cent lower than their parents' was at the same stage of life, millennials' net worth is half that of the boomers.
Its analysis is based on US Federal Reserve data from 1989 and 2013, and shows the younger generation's student debt is higher and rate of home ownership lower.
Tom Allison, the group's deputy research director, said: "These findings uncover that millennials have been set back significantly, by not just the Great Recession but by decades-long financial trends, resulting in major generational declines in financial security between millennials and baby boomers when they were the same age.
“Millennials make up the greatest share of the workforce and the largest generation in history, so in many ways the situation facing young adults today forecasts the financial challenges ahead for the nation.”
A young adult without a college degree could expect the same income in 1989 as a graduate today who is burdened with student debt, Young Invincibles' report said.
And it added: "Significant financial gaps persist between young African Americans and Latinos and their white peers. For instance, young African Americans and Latinos earn 57 cents and 64 cents, respectively, for every dollar earned by young whites."
Young Latinos were "on a more secure financial foothold than they were 25 years ago" but their black compatriots have "lost ground", with their median net worth declining by a third since 1989.
The report continues: "Incomes earned early in one’s career often set the stage for lifetime earnings, with the highest growth occurring in the first decade of work.
"Entering the job market during an economic downturn, essentially starting on a lower rung on the economic ladder, projects lower earnings for today’s young adults throughout their working lives."
Subscribe to Independent Premium to bookmark this article
Want to bookmark your favourite articles and stories to read or reference later? Start your Independent Premium subscription today.
Join our commenting forum
Join thought-provoking conversations, follow other Independent readers and see their replies
Comments