A global report shows that this cohort is most impacted by the financial fallout of COVID-19
Much about the coronavirus pandemic is indiscriminate including the health risk and the restrictions on everyday life. But a new report shows that the financial impact is less universal.
A global study by TransUnion shows that, while financial hardship is affecting people of all generations, there is an outsized share of millennials impacted.
Three in four millennials (76%) indicated that their household incomes have been negatively impacted by the pandemic compared to 64% for all other generations.
Millennials are also more likely to have lost their job during the current crisis – 22% compared to 16% for other generations – and 45% have had their working hours reduced, compared to 35% for other generations.
The poll was conducted in mid-April and included thousands of consumers in the US, Canada, Colombia, Hong Kong, India, South Africa and the UK.
“COVID-19 has brought about unprecedented financial challenges to people and businesses around the globe,” said Chris Cartwright, CEO of TransUnion. “A thorough and fact-based understanding of these impacts and how best to respond to them is second only to our health and safety in terms of society’s successful recovery from this global pandemic.”
Family impact
The impact on millennials is compounded by the fact that this cohort is more likely to have dependent children living at home (61% compared to 39% of other groups).
Millennials also reported more concern about debts with 63% of those with negatively impacted incomes saying they will not be able to make their rent or mortgage payment, compared to 54% for other generations.
“Millennials are the first generation to be fully immersed in mass-market digitalization and are savvy at securing credit,” said Charlie Wise, head of global research and consulting at TransUnion. “While Gen Z can say the same, the big difference is that many Millennials are more settled in their careers and are beginning to approach the peak earning period of their lives.”
Looking ahead, 85% of global respondents across all generations said they have a plan to deal with their financial gap.
