Gen Z Workers Feeling the Pinch from the New Jobs Tax
The Recent Payroll Crunch
According to the Employment Hero Jobs Report, which pulls real‑time data from over 100,000 employees in SMEs, a new month‑long dip in Gen Z employment was recorded. In April, the youngest segment of the workforce shrank by 1.9 %—a figure that rings alarm bells for the future of the labor market.
Wages Take a Hit
- Average pay fell 0.2 % across the board for Gen Z.
- Part‑time and casual Gen Z workers saw a steeper drop of 1.8 % in wages.
- Older generations (Gen X & Y) experienced only a slight wage uptick.
Why Gen Z Is Afraid of the Numbers
Gen Z already wears a paycheck slimmer than their Gen X and Y colleagues. This new setback pushes the gap wider. Men in this age group saw a slightly sharper decline (~0.2 %) than women (~0.1 %).
Casual Workers in the Hot Seat
- Average hourly wage for part‑time Gen Z workers: £12.
- Full‑time Gen Z earners: £14.10.
- Hospitality and retail folks—major employers of young staff—had a 2.5 % pay drop last month.
Inside the Numbers: What the Figures Tell Us
Kevin Fitzgerald, UK MD at Employment Hero, summed it up: “Gen Z workers are bearing the weight of the National Insurance hike. Younger workers—especially those in part‑time or casual roles in hospitality and retail—are facing both shrinking job prospects and lower wages. It’s a double whammy for a generation already earning less than older colleagues.”
For small cafés or corner shops, any bump in employment costs can mean difficult staffing or wage decisions. The latest data suggests businesses are already feeling the pinch and may make tough calls that hurt the youngest and most financially vulnerable.
What’s the Way Forward?
- Young employees need support, not a harsher barrier to employment.
- Employment Hero’s EH Jobs app connects jobseekers to open roles in hospitality and retail.
- In turn, businesses can quickly fill staff gaps, and young workers can find meaningful work without stepping into a cliff of low pay.
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