Children of the 1980s and 1990s in the UK and US were caught out as the financial crisis scuppered the economy just as many started work: generational progress ground to a halt as millennials’ pay took a step down from the levels their predecessors enjoyed at the same age. But that was 15 years ago – some of those “kids” are hitting their 30s and 40s, with children and wrinkles emerging. How are they faring today?
US millennials have staged a recovery – the incomes of those in their early 30s today are 21% higher than those of their predecessors at the same age in 2007. Sadly, new Resolution Foundation research finds the same can’t be said for their British peers, who still have lower incomes today than 30-somethings in pre-financial crisis Britain. The typical weekly pay of graduates aged 30 to 34 fell by a staggering 16% between 2007 and 2023.
In the US the expansion of the universities took place a generation before it did in the UK.
So the effect of the boom in supply of graduates took place a generation before it did in the UK. The Resolution Foundation’s report is comparing the US post the boom in supply to the UK during the boom in supply. That is, the UK numbers include the effect of having too many univiersities as it happens, the US the stable landscape of already having had too many universities.
It is, in short, completely shite analysis because it is not certeris paribus. But then that’s the Resolution Fouondation for you.
The answer, as ever, is simply to close any university which has ever employed R. Murphy. And sow the land with salt etc, obvs.
How could millenials pay take a step down in the 1980s? They were being born and going to school or does he mean that their pocket money was reduced?
The risibly-titled “Resolution Foundation” obviously haven’t copped-on to the simple fact that a degree in Grievance Studies from the “University” of Steeple-Bumstead isn’t quite as career-enhancing as a STEM degree from a Russell Group Uni…
Anecdotal, but the family sprogs are earning far more than I ever have.
Perhaps a small contribution to this was my successful paternal/avuncular advice: in no circs do a PhD.
(At one point I preached that they should not apply to Uni at all without first giving it some critical thought. That was batted back firmly.)
“The answer, as ever, is simply to close any university which has ever employed R. Murphy. And sow the land with salt etc, obvs.”
I say we take off and nuke the entire site from orbit. It’s the only way to be sure.
Some universities are highly dependent on Chinese students. If relations deteriorate or the Chinese economy hits the buffers they will go bust.
That would be a rough and ready way of reducing graduate oversupply. A bit rough on students half way through a useful course, but better than bailing out crap unis.
Prospective students would be well advised to examine the accounts. Does the Office for Students do a sort of Fitch ratings on colleges?
I entered the workforce in 1991 straight into the 1990s recession, and my earnings still haven’t caught up with my father at the same age, and adjusting for inflation, etc.
jgh
Your father worked (and many didn’t) through the 1970s recession which was worse. Find another excuse.
Since age of 35 I’ve never earned more than NMW(+20%), had two spells of 4 months legally earning less than NMW to boot – but the SmartPhone, Internet and electricity can be had for around 8 hours a month labour. Great inventions all.
Not a bad lot in life.
I do wonder though about those Brits taking degrees from certain well known anti-British traditions who have every intention of taking as much of that student loan and maintenance loan as possible, and every intention of learning something so useless that they never earn enough to start repaying.
My Dad was an electronics engineer in the NHS and had five kids and two wives to support in the era of 15MPG cars, soaring petrol prices, and Abigail’s Party. I find no kids, no wife, and a sensible lifestyle is easily supportable on minimum wage.
Somewhat surprised to learn I am probably among the better paid on here (pensioners unconsidered).
dearieme,
You can do the PhD. The mistake fatal to earnings is staying in academia any longer than necessary thereafter. An old acquaintance who couldn’t let go is delighted to have just made it to Honorary adjunct associate assistant professor (I kid you not), which basically means unpaid occasional lecturer, after a full 17 years of postdoccery. I guess the actual income is still whatever employed postdoc salary maxes out at at the 5 years you are expected to have upped or outed at. Which is not much anywhere.
This is, it must be noted, in Canada, and the acquaintance is a paragon of intersectionality, and wield three top-drawer diversity/victimhood cards.
According to your short pen portrait and my prejudices, your acquaintance is probably maximising their potential earnings by staying in academia.
I don’t think they are actually. They simply value the “status” vastly more than what they could earn in the private sector. The universities have long exploited people that way, but some people let themselves get exploited more than is good for them.