Bank of America find Gen Z and Millennials are Receiving the Biggest Pay Raises
Pay increases are outpacing inflation indexes as well...
In a current report, Bank of America has found that Gen Z customers have been raking in the pay days. Over the past year, they have seen a 19.9% pay increase. Between May 2021 and April 2022, the average increase was just 9.2%.
Millennials on the other hand are also exceeded the average wage gains as they are seeing pay jumps of 11.3%.
“Some of the Gen Z rise will simply reflect that people in this group are embarking on their career journeys from education, which inevitably involves significant pay changes. But it is noteworthy that Millennials appear to [be] experiencing higher net pay rises over Gen X."
Bank of America’s report stated.
The highest median pay is being reported in the Gen X workers. They are experiencing catch up wage gains. The easiest comparison is a gym goer “newbie gains.”
Higher average pay increases are being witnessed in the lower-income individual group as well. Customers earning salaries less than $50,000 a year had an average pay jump of 11.5% and those within $50,000 to $75,000 witnessed a jump of 7.7%.
Bank of America’s data takes into account wage gains that’re combined with increases in average hours worked as well as any tax changes. For this, it’s not directly comparable to Bureau of Labor Statistics data, which finds average hourly earnings rose 5.5% in April compared to the past 12 months.
Pay increases are however outpacing inflation indexes. Inflation rose by 7.9% in April. For many, a change in profession or just a change in job seems to be the key to keeping ahead. Bank of America found the average pay bump for those hopping between jobs was about 17.6%. Younger workers have done better by moving on. Gen Z workers netted a 29.7% raise while millennials received a 20% jump.