Earnings gap between young and older workers almost doubles

THE pay gap between young workers and their older colleagues has almost doubled in the past 20 years, a study has shown.

Research by the Trades Union Congress found that the difference in earnings between the over-30s and younger employees was £1.51 an hour in 1998, rising to £2.81 an hour last year.

This represents an 86 per cent increase, and shows how the earnings deficit for staff in their late teens and twenties has increased by thousands of pounds each year. The TUC said its report revealed the sort of challenges faced by young people, including low pay, job insecurity and a lack of progression.

A survey of 1,500 young adults by the TUC, which is celebrating its 150th anniversary this year, found that one in five had worked on a zero-hours contract, and one in four had struggled to pay for basic living costs.

Two out of five had deferred attempting to buy their first house because of concerns over being able to afford the deposit or mortgage repayments.

TUC general secretary Frances O’Grady said: ‘We are creating a lost generation of younger workers. Too many young people are stuck in lowpaid, insecure jobs, with little opportunity to get on in life.

‘This is the most qualified group of workers ever.

‘But huge numbers of hard-working young people are struggling to meet basic living costs, and many more can’t afford a home or are putting off having children.’