Report: The Resolution Foundation - Intergenerational incomes
The impact of the 2008 financial crash on wages has been far more deeply felt – particularly amongst younger workers – according to a new report from The Resolution Foundation.
Entitled: ’Growing Pains: The impact of leaving education during a recession on earnings and employment’ – the report identifies that not only did students enter a tougher market (meaning they experienced a reduction in real hourly pay of around 6% one year after leaving education), but they are still feeling the impact of this.
It finds workers today have experienced ‘occupational scarring’ – longer periods in lower-paying occupations, which has reduced their future working (and earning) prospects. By contrast, those already in employment did not suffer so badly.
- Over the past decade, the typical annual hourly pay rise for someone in a high-paying occupation who had been employed for between one and two years was 54p, far higher than the typical pay rise for someone working in a low- paying occupation (32p)
- The real wages of people just entering the labour market declined by 9% between 2007 and 2010, whereas the wages of people aged 50-64 declined by just 4%