The Evidence That Shows Today’s 20-Somethings Really Do Have it Worse

The notion that every successive generation fares better than its predecessors is being systematically dismantled by the numbers. For young people in their 20s, it’s a bleak reality: they’re facing an economic landscape that’s less forgiving than any since the early 1980s.

Recent analysis of UK data on housing, employment, and wealth reveals an alarming trend: nearly half of all 25-year-olds are now living with their parents. This is up from just over a quarter in the 1990s, painting a picture of a generation struggling to establish itself. Housing costs are a major factor, making it more expensive than ever for young people to rent or own a home. The spiraling bills associated with maintaining a property have created a perfect storm that’s forcing many Gen Zers back into their family homes.

The impact isn’t limited to the young adults themselves; their parents are also shouldering the emotional and financial burden of having adult children living at home. As Adam Daytona, a 26-year-old who’s been forced to move back in with his parents, notes: “It’s unfair on me, it’s unfair on my parents.” The strain on relationships is palpable.

Employment rates are also cause for concern, with a drop in employment among young people for the first time since the 1980s. Today, 25-year-olds experience lower levels of job security than their age-equivalent counterparts from previous decades. One reason is the increasingly competitive job market, where applicants often face stiff competition for a dwindling number of positions.

Daisy Edwards, a 25-year-old who’s been struggling to find work, explains: “I was applying for maybe five or six jobs a day sometimes… It can really get you down and the longer you are unemployed the more you worry about things.” The stagnation in wages is another factor contributing to this bleak picture. Young people’s earnings have plateaued at around £28,000, which may seem like a decent wage on paper but, when adjusted for inflation, it’s clear that progress has stalled.

This generation’s experience serves as a stark reminder that the notion of upward mobility is no longer a given. Jonathan Cribb, deputy director of the Institute for Fiscal Studies, notes: “The big picture is stagnation… It’s not that these people are worse off than those that came before them, but it’s that they’re no better off and that progress has stalled.”

This highlights a fundamental issue with our expectations around economic growth. We’ve become accustomed to the idea that each generation will do better than the last, only to be caught off guard when reality doesn’t match up. The experience of Gen Z also raises important questions about the role of government and policymakers in addressing these issues. As the numbers suggest, it’s not just a matter of individual effort or personal responsibility – there are structural problems that need to be addressed.

Ultimately, this is a story about a generation lost in transition. It’s a tale of young people struggling to find their place in an economy that seems determined to hold them back.