2 March 2017

The proportion of young people changing jobs has fallen in recent years, according to a report by a leading think tank, but this has significant implications for their pay prospects.

Just 1 in 25 people born in the mid-1980s moved jobs from year-to-year when they were in their mid-20s. That is half the rate for those who were born a decade earlier.

In "Study, work, progress, repeat?", the Resolution Foundation argues that the fall in the number of young people moving jobs is contributing to the tendency for so-called Millennials (those born between 1981 and 2000) to experience slower and less well-paid starts to their careers than those before them.

The report can be found at http://bit.ly/2lLDX2b.

It shows that, since the early 1950s, each successive five-year cohort of workers has earned considerably more than the previous one, but that trend has come to an end.

By around the age of 30, people born during the early 1980s have earned about £40 a week less than those born 10 years earlier. Those born in the late 1980s are currently earning no more than people born 15 years earlier were earning at the same age.

The financial crisis has played a part in this shift, but other factors have also contributed to it, the think tank suggests.

Although fewer Millennials have been moving from job to job, employers are increasingly opting not to reward staff for long service and there has been a shift towards work in low-paying sectors.

In a jobs market characterised by rising temporary work and zero-hours contracts, young people have been prioritising job security and choosing to stick with their employer, the Resolution Foundation's Laura Gardiner explained.

But with the typical pay rise for a job mover in their mid-20s at around 15%, that loyalty can be very costly, she added.