Quite often we will hear members of the older generation mention how much more difficult things were “back in the day,” but that may not be the case for much longer. New data analysis shows that things are a lot tougher for people in the 25-to-34-year-old age bracket now than they were in 1989 due to many reasons;
When you compare the average annual income between millennials and employees in the same age bracket in the late ’80s, today’s employees earn more than $10,000 a year less, or roughly a 20% decrease. Furthermore, they have accumulated roughly half the assets their parents had by the same age.
Since 1989, white Americans have suffered the worst when it comes to the decline of the median income with a staggering 21% pay decrease. Wages of African-Americans dropped slightly in the same timeframe as well, however, Latinos on the other hand saw their median income level rise by 29% in that time, overtaking the average median of African-American’s along the way.
You read that heading correctly. In order to earn the same wage as a worker without a degree did less than thirty years ago, a millennial at least needs to earn themselves a degree, but that wage increase will also land them a crippling college debt. Still, the advantages that come with having a degree far outweigh not having one.
Not only is student debt a major problem across the United States at the moment, but so is the decline of assets for student borrowers. Assets have declined sharply for people of all educational backgrounds, but those of a student with a debt declined at a rate of 71%, as opposed to 54% for assets of those that don’t even have a degree.
The idea of owning your own home despite not having a degree wasn’t that unfeasible in 1989, however, it’s not as likely now. Although home ownership is up for degree-holding millennials, the total number of home owners in the 25-34 age range has dropped from 46% to 43%.
Every cloud has a silver lining so, after all of those depressing statistics, let’s try and close on a positive. Across all educational demographics, millennials are somehow able to save at least twice as much as people of the same age group at the end of the ’80s.