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The pay gap between young and older workers has increased by more than half in the last 20 years, according to a new report published by the TUC.
The report shows that in 1998 the pay gap between over 30s and under 30s was 14.5%. However, in 2017 it had widened to 21.9%.
The generational pay gap has increased in real terms from £3,140 in 1998 to £5,884 in 2017 for someone working a 40-hour week. It has grown by £2,744 over the last two decades.
The TUC report reveals that young workers are increasingly likely to be concentrated in low-paid, low-skilled sectors, with few opportunities for progression.
More than a third (36.1%) of under-30s are currently work in caring, sales or elementary occupations, compared to just over a quarter (25.8%) of over-30s, says the TUC.
It adds that the number of 21-30 year-olds working in low-paid industries like private social care (+104%) and hotels and restaurants (+80%) has shot up since 1998, even though today’s young workers are the most qualified generation ever.
A survey conducted for the report shows:
- Just 3 in 10 (31%) have felt that their current job makes the most of their experience and qualifications.
- 4 in 10 (38%) have had few or no training opportunities in the last year
- 1 in 5 (21%) have worked on a zero-hours contract in the last five years
- Nearly a quarter have struggled to earn enough to pay basic living costs, and 1 in 5 have skipped a main meal to make ends meet in the last year.
- Because of concerns about finances: 22% have put off starting a family and 41% have put off buying or moving home.
The TUC is launching a pilot version of a new app – WorkSmart – described as a career coaching app that helps young people to identify their strengths and weaknesses so they can progress at work and helps build relationships with co-workers as well as informing them about their rights.
The project has been in development for two years and aims to develop a model of trade unionism better-suited to a new generation of workers.
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