Young hit hardest by recession, says IFS

 
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Young people were hit far harder by the recession than older generations, a report has found.

People aged 22-30 saw their household incomes fall by 13% between 2007 and 2013, while those between 31 and 59 saw a 7% drop, according to the Institute of Fiscal Studies (IFS).

Employment prospects for the under-30s were also hit harder.

Living standards are set to be a key issue in the run-up to next year's general election.

While the government has focused on the economic recovery, the opposition Labour party says living standards have yet to improve for too many people.

'Hardest hit'

The IFS report, based on government figures part funded by the Joseph Rowntree Foundation, also found that the employment rate among 22-30 year olds over the period fell by 4%, while that among 31-59 year olds remained stable.

The over 60s saw almost no impact on either houshold incomes or employment rate.

"Pay, employment and incomes have all been hit hardest for those in their 20s," said Jonathan Cribb, research economist at the IFS.

"A crucial question is whether this difficult start will do lasting damage to their employment and earnings prospects."

The report also concluded that was "no clear North-South divide" in the impact of the recession. It also noted that home ownership among the young had fallen sharply in recent decades.

Only 21% of people born in the 1980s had bought their own house by the age of 25, compared with 34% of those born in the 70s and 45% of those born in the 60s.

The Treasury said the report showed "just how hard Labour's great recession hit young people and why it's vital we keep working through our long-term economic plan to cut the deficit, create jobs and equip people with the skills they need for the future".

Labour Treasury spokeswoman Catherine McKinnell said: "While David Cameron denies there is a cost of living crisis, these figures show people have seen a substantial fall in their incomes since 2010".

 

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  • rate this
    +3

    Comment number 436.

    The young do not get their noses out of their iPad or whatever and they do not have enough grit to vote. We have become a nation of couldn't care less. My late father always taught me to go and use your vote as he used to say ITN is no good grumbling about things when you have done nothing to try to change it. One voice is nothing a thousand voices or a million voices can change it. Use your votek

  • rate this
    +9

    Comment number 357.

    351.oneintheeye
    I live in a cheap area, 3 * 45k wouldn't buy you a 1 bedroom flat. Whilst I agree there are plenty of reasons why moaning is becoming a national pasttime 10 times the average salary for an average house is unsustainable and damages our economy. The only real winners are 2nd home owners, BTL and te banks

  • rate this
    0

    Comment number 342.

    The recession and housing crisis was a way for money to pour in to secure even more assets for the already rich. Twas ever thus, Money goes to money - and it gets harder and harder for those without significant assets to accumulate any themselves. Todays pensioners are tomorrows inheritance providers - but too late for their kids and grand-kids families to have a decent life growing up.

  • rate this
    +12

    Comment number 239.

    Only dead end jobs you say? I had one of those fresh out of uni but worked hard and quickly worked my way up into management. Any company worth it's salt will spot the wheat from the chaff. A bit of elbow grease and positive attitude helps.

  • rate this
    0

    Comment number 204.

    When I bought my first property in the 80s it's cost was 3 times my (just above average for those days) salary back then.

    If my kids wanted to but that property now at the same 3 times salary they'd need to be earning £75k

    It's not lazy uneducated kids that are the problem it's banks & governments.

    ...and just wait for the interest rate rises



    and people think lazy kids are the problem!!

 

Comments 5 of 14

 

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