Job loyalty denting millennials’ pay and careers, report finds

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Millennial workers are suffering from a reluctance to change jobs which is negatively effecting their pay and career progression, according to research by the Resolution Foundation.

Workers born in the mid 1980s were compared to those born in the mid 1970s in the study, which found that the rate of moving jobs year-to-year has halved, from 50% of workers to 25%.

The study named ‘Study, Work, Progress, Repeat? found that generations born from the 1950s to 1970s earned more than the generation before them during their 20s. However those born in the 1980s earn around £40 a week less than those born 10 years earlier.

Factors such as the 2008 in recession also impact pay rates still, as well as less job mobility and a failure of companies in rewarding long service. The typical pay increase for someone moving job in their 20s is 15 per cent and this decreases with age, loyalty may be due to the uncertainty of the job market with issues such as the prevalence of zero hour contracts.

Laura Gardiner of the Resolution Foundation told People Management that although this generation are the most highly qualified Britain has ever seen:  “Making the most of these skills will be the key to getting Britain’s longstanding social contract that each generation outperforms the last back on track.”

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Link to People Management article on this issue: http://www2.cipd.co.uk/pm/peoplemanagement/b/weblog/archive/2017/02/23/job-loyalty-denting-millennials-pay-and-careers-report-finds.aspx

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