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Resolution Foundation: Millennials’ finances will suffer without job market reform

Business-Office-Workers-Generic-General-Finance-700x450.jpgThe Resolution Foundation has said new policies must be targeted at millennials to help them overcome a tough labour market so they do not fall behind previous generations.

In a report published today the think tank argues that apart from a robust employment rate job security has been lacking for those born between 1981 and 2000.

It points out that typical weekly earnings for millennials who have turned 30 are currently £470 or £15 less than that of Generation X when they turned 30 between the years of 1996 and 2010.

It says this represents an unprecedented break with the past in which successive generations earned significantly more than their predecessors did at the same age.

The report also warns simply assuming challenges from these big shifts in the labour market will disappear would be a dangerous mistake as effects on pay trajectories are likely to be lasting despite some signs of a partial bounce-back on pay.

To tackle these effects the Resolution Foundation proposes extending statutory maternity, paternity and shared parental pay to the self-employed.

Also the policymakers should simplify and clarify the process to determine employment status while there should be a better deal for low-paying sectors.

The Government should agree sectoral deals that include maximising progression opportunities for those in part-time and flexible roles.

It should also target funding for specific training and qualifications informed by skills gaps and incentivise firms to improve the skills of their workforce.

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