Millennials are falling out of the US middle class, and at a more rapid pace compared to developed nations around the world.
A new report from the Organization for Economic Cooperation and Development (OECD) has revealed that only 6 out of 10 millennials earn enough to be considered middle class.
While the middle class is shrinking across the globe, it's millennials and Generation Z that appear to be in the biggest trouble.
Threatening the middle class lifestyle is stagnant wages, soaring house prices, health and education costs, and the rise of automation in many career sectors.
Millennials are falling out of the US middle class, and at a more rapid pace compared to developed nations around the world (file photo)
At just over 50 percent, the US middle-income class is much smaller than in most countries included in the new Organization for Economic Cooperation and Development report
And at just over 50 percent, the US middle-income class is much smaller than in most OECD countries, according to the report.
Fifty-one percent of Americans are in the middle class, compared to 61 percent of OECD countries.
And while 59 percent of baby boomers in the US were in the middle class when they were in their twenties, only 53 percent of millennials can now say the same.
The OECD defines middle class as those who earn between 75 percent to 200 percent of the median national income. In the US, that means between $23,416 and $62,442 for a single worker.
Middle earners have not done as well as those at the top, with average wages rising by a third less than those of the richest 10 percent over the past 30 years.
While 59 percent of baby boomers in the US were in the middle class when they were in their twenties, only 53 percent of millennials can now say the same
This has only gotten worse since the financial crisis, with average pay growing just 0.3 percent a year compared to 1.6 percent in the 1990s and mid-2000s.
Meanwhile, costs have risen much faster than inflation for some of the key pillars of middle class life including housing, which the OECD said had risen three
