We have got plenty to spend on but a little even a very few to earn off. This has been a story through all the time but unfortunately now its even more intense. The youth spends about 30% of their income on just the routine expenses.
Income levels are sharply rising over the last few years, but the expenses have quadrupled according to estimates by the International Monetary Fund. if we compare the consumption basket of millennials during the early ’90s and now, we get an interesting change in the trend. our incomes have not kept pace with our rising aspirations. we need to know that there is a very thin line between necessity and luxury. people from the mid-’40s when were in their 20s did not have gadgets to buy and were limited to occasional entertainments which could barely include movies. most of them preferred to walk or to use a mode of public transport. these preferred to cook food at their place only unlike us!!
On an average, a third of their income went into saving. however, now we are not even able to save one-third of our income.
we the millennials have somewhat worse off. we have plenty amount of gadgets, we go out for a hangout, we will anyway hire an uber than a mode of public transport and of course, we are any day anytime we are ready for a dine out; which obviously will be going to increase our expenses.
“Aamdani Atthanni Kharcha Rupaiya” but the current crop of millennials employed in the sector is less fortunate. the starting salaries at the IT companies have been largely unchanged over the past decade. Anecdotal evidence suggests that the average annual salary grew at a CAGR of just 1.5% in the IT sector over the past decade, especially for fresh graduates.
whereas startups in technological sections have better opportunities than the 9-5 work people(this is what I feel).
the startups hire do not hire in the same large numbers, unlike the old vintage companies. another factor that contributes to this article is the burden of repayment. Though the educational loans provide instant relief to many aspiring students, they are nevertheless a deadweight loss. The borrowers, mostly the millennials are unable to repay because of a lack of quality jobs or due to unemployment.
To take an example, a fresh graduate earnings INR 35,000 per month will have to cough up anywhere between INR 13,000 and INR 17,000 per month to repay an education loan of INR 20 lakh.
India’s poor performance in the employment generation is making matters worse. According to the National Sample Survey Office’s data, unemployment rates were higher in urban areas(7.8%)than in the rural (5.3%) ones.
To conclude, the young are headed to an economy that will see increased automation and more pressure on wages. It was always tough for being young. It will be even more so in the future.