Gen Z Is Losing Confidence in the UK Economy

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Or sign-in if you have an account.o0jhoz7861ihjrmpwam[l88p_media_dl_2.png GfK, Bloomberg(Bloomberg) — Gen Z is becoming less sure about whether Britain’s economy is working for them, as high unemployment and low savings rates leave younger people feeling pessimistic about establishing their careers and buying property.THIS CONTENT IS RESERVED FOR SUBSCRIBERS ONLYSubscribe now to read the latest news in your city and across Canada.Exclusive articles from Barbara Shecter, Joe O'Connor, Gabriel Friedman, and others.Daily content from Financial Times, the world's leading global business publication.Unlimited online access to read articles from Financial Post, National Post and 15 news sites across Canada with one account.National Post ePaper, an electronic replica of the print edition to view on any device, share and comment on.Daily puzzles, including the New York Times Crossword.SUBSCRIBE TO UNLOCK MORE ARTICLESSubscribe now to read the latest news in your city and across Canada.Exclusive articles from Barbara Shecter, Joe O'Connor, Gabriel Friedman and others.Daily content from Financial Times, the world's leading global business publication.Unlimited online access to read articles from Financial Post, National Post and 15 news sites across Canada with one account.National Post ePaper, an electronic replica of the print edition to view on any device, share and comment on.Daily puzzles, including the New York Times Crossword.REGISTER / SIGN IN TO UNLOCK MORE ARTICLESCreate an account or sign in to continue with your reading experience.Access articles from across Canada with one account.Share your thoughts and join the conversation in the comments.Enjoy additional articles per month.Get email updates from your favourite authors.THIS ARTICLE IS FREE TO READ REGISTER TO UNLOCK.Create an account or sign in to continue with your reading experience.Access articles from across Canada with one accountShare your thoughts and join the conversation in the commentsEnjoy additional articles per monthGet email updates from your favourite authorsSign In or Create an AccountConsumer sentiment across all age groups was dented in April, data from GfK show, as household budgets were hit by a record surge in petrol prices triggered by the Middle East conflict. But while confidence among over-50s has largely recovered since then, consumers aged 16 to 29 have become more skeptical. In absolute terms, younger people continue to be more upbeat about the economy than other cohorts, according to GfK’s data. But the gap between the generations has narrowed considerably since the end of last year.Get the latest headlines, breaking news and columns.By signing up you consent to receive the above newsletter from Postmedia Network Inc.A welcome email is on its way. If you don't see it, please check your junk folder.The next issue of Top Stories will soon be in your inbox.We encountered an issue signing you up. Please try againGfK’s confidence tracker for 16- to 29-year-olds declined to minus two in June, down from 18 in December. Among 50- to 64-year-olds, sentiment was unchanged over that period at minus 41, and declined just one point to minus 39 among those aged 65 and above.“Young people were probably more hopeful for change” when the Labour Party came into power in 2024, said Neil Bellamy, consumer insights director at GfK. “A lot of that optimism didn’t last.” He added that older, wealthier people took advantage of high interest rates after the pandemic to boost their savings, while less affluent households struggled with daily essentials. “Younger people just have less buffer in life, in terms of when things do go wrong.”The UK economy is fragile and some of its weaknesses are particularly tough on younger people. Entry-level jobs have become scarcer as employment costs increase and artificial intelligence advances, while rising living expenses and mortgage rates are making it hard to get on the property ladder.About one in six 16- to 24-year-olds was unemployed in May — the highest share in over a decade — with more than a million young Britons left out of work and education.“Job security has become a bigger concern for younger people,” Kien Tan, senior retail adviser at PwC, said. “While older people have also been affected to some extent, they are more likely to have accumulated savings and to own their homes or have smaller mortgages.”Only about a fifth of 18- to 24-year-olds considered their finances “healthy” in April, a survey by PwC found, down from almost a third at the start of the year. Those aged 55 and above reported little to no change in their financial situation.Pensioners are the only age group whose appetite for saving has grown substantially since before the Covid pandemic. Intentions among over-65s to set money aside in the three months through June have doubled compared with 2019 levels, while remaining relatively flat among younger households, according to a Bloomberg analysis of GfK data.In his first speech as UK prime minister, Andy Burnham pledged to “help more young people into work by changing the education system and giving them more support.”This advertisement has not loaded yet.This advertisement has not loaded yet, but your article continues below.Burnham’s announcement on Wednesday that he will lower the national cap on bus fares from £3 ($4) to £2 will help less well-off consumers including the young, since they are more likely to use public transport than wealthier demographics and bus travel is already free for pensioners. His decision to remove value added tax from electricity bills starting in October will be felt widely, but financially comfortable families with bigger homes that use more energy stand to benefit most, according to the Institute for Fiscal Studies. Some lawmakers are calling for employers to be exempted from paying national insurance contributions for staff aged under 25, after economists blamed increased contribution requirements for depressing hiring. Young Britons are “faced with a different set of odds in terms of employment, disposable income, cost of living,” said Anita Balchandani, a McKinsey senior partner who leads the company’s UK consumer and retail practice.“If you wind back to two decades ago, this generation would start to be thinking about the first home,” she added. “You’ve now got a scenario where all of these things seem so out of reach.”Notice for the Postmedia NetworkThis website uses cookies to personalize your content (including ads), and allows us to analyze our traffic. Read more about cookies here. By continuing to use our site, you agree to our Terms of Use and Privacy Policy.