Gen Y losing out in income gap between generations

September 24, 2014

New data from the Conference Board of Canada shows that while the income gap between men and women is shrinking, the divide between younger and older workers is growing. “Age rather than gender is becoming the new divide in our society,” said Conference Board Vice-President David Stewart-Patterson. Young people, he said, “face lower wages and reduced pension benefits even for the same work at the same employer.” Employers frequently offer new hires less pay and reduced pensions. Canadians between the ages of 50 and 54 have 64% more disposable income than those aged 25–29, up from 47% in the mid-1980s. These figures should be cause for concern, said Stewart-Patterson, as they could impact the government’s ability to generate tax revenues as well as economic growth, especially as the baby-boomer generation begins to exit the workforce. He also said that young people will increasingly become “fed up” with their situation. “Younger people are starting further behind, rather than getting ahead, which is where we need them to be,” said Stewart-Patterson. Conference Board News Release | Full Report | Financial Post | Globe and Mail