Young people suffering most in aftermath of financial crisis
Published 16/07/2014 | 00:00
Young people in Britain saw their incomes fall almost twice as much as older people in the five years after the financial crisis, according to a report published by a leading think tank.
New research from the Institute for Fiscal Studies (IFS) showed median household income fell 13pc, taking inflation into account, for 22-30 year-olds between the 2007-08 and 2012-13 financial years, compared with 7pc for people aged between 31 and 59.
And while the employment rate was unchanged for the over-30 age group over the period, it fell by four percentage points for those in their 20s, according to the IFS.
Living standards are a key issue ahead of next year's general election in Britain.
While the economy has grown much more quickly than expected over the last year, wage growth is only just starting to recover after lagging inflation almost constantly since the crisis.
"Pay, employment and incomes have all been hit hardest for those in their 20s.
"A crucial question is whether this difficult start will do lasting damage to their employment and earnings prospects," said Jonathan Cribb, research economist at the IFS.