A comprehensive report published this morning by the Resolution Foundation paints a stark picture of dwindling opportunities for young Britons, prompting the Prime Minister to pledge urgent intervention. The data, drawn from longitudinal studies and economic indicators, reveals a generational fracture: those born after 1990 are on track to be the first cohort in modern British history to have lower lifetime earnings than their predecessors, adjusted for inflation. Housing ownership among 25 to 34-year-olds has halved since the 1990s, while precarious employment and student debt have soared.
The core driver is a structural shift in the economy: the decline of industries that once offered stable, well-paying careers, and the rise of a service sector characterised by flexible but insecure labour. The Prime Minister, in a statement from Downing Street, acknowledged the severity of the crisis, calling it a ‘lost generation’ and promising a package of measures including expanded apprenticeship schemes, a review of housing policy, and increased funding for further education. But the report’s authors caution that halfway measures will not suffice.
They draw a parallel to the energy transition: just as we must decarbonise rapidly, the labour market must undergo a deliberate, managed transformation. The physical reality is that young people are being left behind by forces that will not correct themselves. The question is whether political resolve can match the scale of the problem.
