Are Gen Z Earning More Than Millennials?

As Generation Z (born roughly 1997–2012) enters the workforce, many wonder if they’re out‑earning their Millennial predecessors (born 1981–1996). At first glance, tech‑savvy Gen Zers may seem poised for rapid financial success. 

In reality, the data show that, on average, Millennials still enjoy higher pay, though Gen Z’s faster wage growth and changing work patterns hint at a narrowing gap.

Defining the Generations

• Millennials: Ages 29–44 in 2025. Many are mid‑career professionals with years of on‑the‑job experience.
  
• Gen Z: Ages 13–28 in 2025. The oldest cohort is just a few years into their careers, while many remain students or recent graduates.

Experience and the seniority that comes with it are key factors in salary differences.

What the Numbers Show Today

According to the U.S. Bureau of Labor Statistics, in the second quarter of 2025 the median weekly earnings for full‑time workers aged 20–24 (largely Gen Z) stood at $782, compared with $1,139 for those aged 25–34 (younger Millennials) (Bureau of Labor Statistics). Over a full year, that equates to about $40,600 for Gen Z versus $59,200 for Millennials.

Meanwhile, Investopedia reports that Gen Zers earn an average of $1,910 per month, or roughly $22,900 annually, reflecting the early stage of their careers and lower starting salaries (Investopedia). By contrast, many Millennials have climbed payroll ladders into management roles and specialist positions, boosting their incomes well above entry‑level wages.

Why Millennials Currently Earn More

1. Experience and Seniority: Each additional year on the job typically brings a pay rise. Millennials benefit from having more years of experience and tenure.
   
2. Career Stage: Millions of Millennials occupy mid‑career roles—project managers, senior analysts, department heads—that pay substantially more than entry‑level jobs.
   
3. Educational Debt Cycles: While student‑loan burdens affect both groups, many Millennials have already repaid or refinanced loans, freeing up income for savings and investments, whereas Gen Z may still be servicing their debt.

Early Signs of a Shifting Landscape

Though Gen Z currently trails millennials in absolute earnings, several trends suggest their pay could catch up:

• Rapid Wage Growth: Recent data show Gen Z’s year‑on‑year wage increases outpacing the overall workforce average, reflecting strong demand for digital and technical skills (Bank of America Institute).
  
• Remote and Gig Opportunities: Gen Z’s fluency with online platforms lets them access global freelancing markets and remote roles, often at higher pay rates than local entry‑level positions.
  
• Specialised Skillsets: Many young Gen Zers enter the job market with in‑demand skills like coding, UX design, and digital marketing, commanding premium starting salaries.

Exceptions and Individual Success Stories

While averages favour Millennials, top‑performing Gen Zers in finance, technology, and creative industries can already out‑earn many of their older peers.

For example, a Gen Z software engineer at a leading tech firm or a social‑media entrepreneur with viral success may surpass the median millennial income by a wide margin. Personal branding, side hustles, and equity‑based compensation can further boost select Gen Z paychecks.

On average, Millennials still earn more than Gen Z, thanks to greater experience, higher‑paying mid‑career roles, and established professional networks.

However, Gen Z’s stronger recent wage growth, digital fluency, and openness to flexible work models suggest the generation gap in earnings will narrow over the next decade.

As Gen Zers mature into senior positions and ride waves of technological change, they may well match or even exceed the financial heights reached by many Millennials.