‘Ripped away’: Crisis forcing Gen Z to give up on dreams

Reed, 24, was chasing his dream but was forced to give it up as expenses rage out of control in Australia.

The rental crisis and soaring cost of living has been “pretty devastating” for 24-year-old Reed Lewis.

He had moved to Melbourne to pursue his musical career and was working as a bartender to “make ends meet” being paid on average $25 an hour, he said.

The low wages made it almost impossible to survive as prices continue to soar in Australia.

“It was really difficult to live. I was paying $300 a week rent before my electricity and water bills and then it went up further to about $350 and then the house got sold,” he told news.com.au.

“So I had to then go into an extremely competitive market that was so competitive that I had to move to Western Australia to not become homeless.

“I couldn’t really afford much and what I could afford there was such fierce competition it was really hard for a 24-year-old hospo worker to even get a look in.”

Reed Lewis faced homelessness due to the rental crisis and low wage as a hospitality worker. Picture: Supplied

Mr Lewis had searched for a new home for two months but was left devastated when he had to return to Perth to live with his parents.

“I was trying to do something with my music career and was actually getting somewhere and had that all ripped away from me,” he added.

The Gen Z man said it feels like no matter what he does he is always struggling.

In Perth he has gotten another hospitality job but also took an office job to build up his savings as he never wants to be in the position he faced in Melbourne.

“I don’t drink, I don’t smoke I just try to get ahead and it feels like the odds are stacked against me and I don’t understand why,” he said.

“Everything costs so much and we are not getting paid that much.”

He said his music career was taking off in Melbourne before he was forced to leave. Picture: Supplied

It comes as new data reveals major discrepancies in wages that show the winners and losers of wage growth across different industries.

At the bottom of the pay ladder, the retail and hospitality sector recorded the lowest hourly rate at $33.10; a monthly decrease of 1.3 per cent since April.

At the top is the technology sector which currently boasts the highest hourly rate at $55.79, the Employment Hero’s latest SME Index showed.

However, a 3.3 per cent dip in monthly wages and an annual drop of 2.5 per cent suggests a continued cooling within this industry, and challenges in maintaining competitive pay as austerity continues in the sector’s push for growth.

Despite a 2.2 per cent monthly drop in healthcare wages, the sector recorded robust annual wage growth of 7.5 per cent, reflecting the ongoing demand for healthcare professionals.

Meanwhile, the construction and trade sector, among the biggest contributors to the nation’s economy, has shown steady wage growth over the past year, with significant annual growth of 6.2 per cent.

Reed Lewis made so little as a hospo working that amid the rental and cost of living crisis he was forced to move states and back in with his parents. Picture: Supplied

Month-on-month, hourly rates grew by 0.7 per cent, up to $40.35 in those sectors.

Overall, the average hourly rate across Australia sits at $38.67 month-on-month, a drop of 1.4 per cent in April.

Employment Hero CEO Ben Thompson said the retail and hospitality sector’s slower wage growth highlights challenges in maintaining profitability amid fluctuating consumer spending.

He said retail and hospitality workers are currently struggling on current wages.

“The retail and hospitality sector is particularly vulnerable in the current economic climate,” he noted.

“Business owners are strapped for cash and the declining wages and reduced hours are symptomatic of broader financial pressures these businesses are facing. This trend not only impacts employees but also overall consumer spending and economic stability.”