With the last recession in Australia occurring nearly 30 years ago, it’s likely that not many of you remember its effects. However, for those of you who are older with adult children just beginning to enter the workforce, you may be worried about how the recession will impact on them.
With a recession comes little wage growth and a lack of jobs, especially for those who may just be graduating from university and seeking to enter the workforce with limited experience.
Unfortunately, research suggests that the new generation of workers will be the worst affected by the economic effects of the COVID-19 crisis and resulting recessions. In fact, it is projected that the demographic entering the workforce now will experience wage loss of more than $7 billion over the next decade.
So what can you advise your children or younger loved ones to do to weather this uncertain financial period?
Just like every generation, advising your kids to improve their financial literacy and seek the help of a financial expert can ensure they are maximising their savings capacity with the income they receive. Younger workers should also try to be more proactive in their career progression by actively seeking out opportunities for advancement and wage growth.