COVID-19 Impacting Consumer Finances Similarly Around the World with Millennials Facing the Greatest Challenge
April 30 2020 - 8:00AM
The COVID-19 pandemic is causing similar financial hardship for
consumers around the world, but new research indicates that
Millennials (those persons between the ages 26-40) are being
challenged the most. A just-released TransUnion (NYSE: TRU) global
report including seven regions on five continents found that three
in four Millennials (76%) worldwide indicated their household
incomes have been negatively impacted by the pandemic. This
compares to 64% for all other generations.
In the weeks since the World Health Organization (WHO) declared
the coronavirus (COVID-19) a pandemic on March 11, TransUnion has
polled thousands of consumers in the U.S., Canada, Colombia, Hong
Kong, India, South Africa and the U.K. to determine the impact of
the pandemic on their finances. Research for the global report was
conducted in mid-April and observed how COVID-19 has impacted
millions of global consumers differently based on employer size,
generational differences, government interventions and income
dynamics.
“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.”
A clear outcome from the research is that many consumers are
worried about their finances, but the Millennial generation is
under the most stress. In the seven regions featured in the study,
22% of Millennials with household incomes negatively impacted have
lost their job due to COVID-19 compared to 16% for all other
generations. Just under half (45%) of Millennials with incomes
negatively impacted have seen their work hours reduced compared to
35% for the rest of the group. Impacts observed globally are
similar in the U.S.
Millennials Facing Greatest Challenge
from COVID-19 Pandemic
Region/Generation |
Percent indicating their household incomes have been
negatively impacted |
Percent indicating they have lost their job due to COVID-19
(of those with negatively impacted incomes) |
Percent who have seen their work hours reduced (of those
with negatively impacted incomes) |
Millennials |
Other Generations |
Millennials |
Other Generations |
Millennials |
Other Generations |
World Composite* |
76% |
|
64% |
|
22% |
|
16% |
|
45% |
|
35% |
|
United States |
69% |
|
58% |
|
22% |
|
16% |
|
48% |
|
32% |
|
*World composite includes U.S., Canada, Colombia, Hong Kong,
India, South Africa and U.K.
This pressure is compounded by the fact that 61% of Millennials
said they have dependent children living at home – a much greater
rate than the 39% noted for other generations. In the U.S., 58% of
Millennials in the survey have dependent children living at home
compared to 36% for other generations.
Millennials who have seen their household incomes negatively
impacted also are having more pronounced problems with certain debt
obligations. For instance, 63% with negatively impacted incomes
report they will not be able to make their rent or mortgage payment
compared to 54% for other generations. In the U.S., 61% of impacted
Millennials are unable to pay for shelter compared to 57% 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.”
Where do we go from here?
While the global report makes it clear that consumers are
struggling financially, the research suggests that they are coping
relatively well. For instance, five in six (85%) global respondents
said they have a plan to deal with their financial gap regardless
of generation. In the U.S., 87% said they have a plan.
“The big question most everyone is asking is how long the
pandemic will last and what will be the impact on the global
economy. No crystal ball exists. And people living today have never
faced a similar global pandemic with such a far-reaching impact,”
said Wise. “The good news is the research demonstrates that people
are resilient, and most have figured out a plan for how they will
manage their finances until economies re-open and employment
opportunities return.”
Additional details about the report as well as resources for
consumers looking to minimize the potential negative impact of the
pandemic on their credit can be found on TransUnion’s COVID-19
website. Businesses interested in learning how to navigate the
impacts of COVID-19 can gain insights from TransUnion webinars,
blogs and more here.
About the Global ReportTransUnion surveyed
9,215 consumers in the U.S., Canada, Colombia, Hong Kong, India,
South Africa and the U.K during the week of April 13. In addition
to generational information, the global report provides insight on
the impact of the financial hardship caused by the COVID-19
pandemic on other key factors such as employer size, income
dynamics and government interventions. This report is part of
TransUnion’s effort to make trust possible between businesses and
consumers by providing information and insights so that people can
transact confidently.
About TransUnion (NYSE: TRU)TransUnion is a
global information and insights company that makes trust possible
in the modern economy. We do this by providing a comprehensive
picture of each person so they can be reliably and safely
represented in the marketplace. As a result, businesses and
consumers can transact with confidence and achieve great things. We
call this Information for Good.®
A leading presence in more than 30 countries across five
continents, TransUnion provides solutions that help create economic
opportunity, great experiences and personal empowerment for
hundreds of millions of people.
http://www.transunion.com/business
Contact |
Dave
Blumberg |
|
TransUnion |
|
|
E-mail |
david.blumberg@transunion.com |
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Telephone |
312-972-6646 |
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