The middle class is shrinking across the globe — and millennials are feeling the brunt of it, according to a global economic report published Wednesday.
Just 60 percent of millennials in developed countries earn enough to be considered middle class, the report from the Organization for Economic Cooperation and Development (OECD) revealed, compared to 70 percent of baby boomers when they were in their 20s. The OECD represents 36 of the globe’s largest economies.
The study, named “Under Pressure: The Squeezed Middle Class,” found that things like automation in the job force and the high cost of healthcare and education is making it more difficult for younger generations to stay financially afloat.
“These trends paint an uncertain picture for workers with middle incomes, in particular, those with low-medium skills in routine jobs,” the report said, explaining that as many one in six middle-income jobs could be replaced by automation.
A middle-class income — defined as being 75 to 200 percent of the median national income — could be anywhere from $23,416 to $62,442, according to OECD.
In the US, just over 50 percent of the nation is considered middle class, which is smaller than most developed countries, CNN business reported.
“Today the middle class looks increasingly like a boat in rocky waters,” the OECD’s Secretary-General Angel Gurria said in a statement during the report’s launch.
More and more households are also finding themselves in debt.
“One in five middle-class households spend more than what they earn, which is increasing indebtedness,” Stefano Scarpetta, director for employment, labor, and social affairs at the OECD, told CBS.
“It’s becoming more difficult for the middle class to pay for the things they need.”
And with a healthy middle class being essential to a nation’s socioeconomic well-being as a whole, Scarpetta said this is a disturbing trend.
“It’s the backbone of our society, both economically and socially. It’s the largest share of the population. The fact that they are struggling should be a source of concern.”