The Millennial generation, or those aged between 16 and 35, are earning less than previous generations - the first time this have ever happened - and are less likely to own a home, according to a new report. The report, "Stagnation Generation", calls for the social contract between young and old generations to be renewed, as millennials are at risk of becoming the first generation to earn less over their lifetime than earlier generations.

According to the report, in the U.K. today's 27 year olds are earning the same amount as a 27 year old would have 25 years ago.

"A typical millennial has actually earned £8,000 ($10,587) less during their twenties than those in the preceding generation – generation X," the report claims.

And while several generations were hit by the financial crisis of 2007-08, young people have experienced the biggest pay squeeze. For instance, while median hourly pay in the U.K. has shrunk 8.9 percent for all employees between 2009 and 2015, pay for those aged 22-29 has shrunk 12 percent, more than any other age group, according to figures from the U.K.'s office of National Statistics.

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