Why It Matters That More Americans Are Taking on Second Jobs
There’s been a noticeable uptick in the number of Americans working multiple jobs.
The job market is softening but more Americans are holding down multiple jobs. That speaks to both rising living costs and a bountiful market for gig-economy work.
Roughly half (48%) of respondents ages 18-27 reported having side hustles (the highest of any age bracket) followed by Millennials (44%), Generation X (33%) and Baby Boomers (23%) according to the study.
The Cost of Living Squeeze
It’s no secret that inflation has been hitting wallets hard. Prices for essentials like rent, insurance, and food have been on a steady climb while wages haven’t kept up with the pace. As a result, more people are picking up second jobs to make ends meet.
According to the Bureau of Labor Statistics the percentage of Americans working multiple jobs has risen from around 4% during the pandemic to over 5% in recent months.
This surge in "double-jobbing" often reflects the harsh reality many households face— one paycheck just isn’t enough anymore. The economy may be growing, but it’s not growing equally for everyone. Economists refer to this as a bifurcated (“k-shaped”) recovery which means that some Americans are doing quite well while others are struggling to stay afloat.
It’s not just about rising costs.
The nature of work itself has shifted dramatically especially since the pandemic. With the rise of remote work and the booming gig economy, it’s easier than ever for people to find flexible, part-time work. Side hustles like driving for Uber, freelancing online, or delivering groceries can be picked up on short notice and fit around a full-time job.
While these opportunities offer immediate income and flexibility, they come with trade-offs. Many of these jobs lack long-term stability, health benefits, or retirement plans. So while workers may be able to juggle multiple gigs now, the question remains: at what cost to their future security?
What does this trend of more Americans working multiple jobs mean for the broader economy?
This could be a warning sign that the economic recovery isn’t as strong as it seems. Recent jobs reports have shown signs of softening, with fewer positions being added to the economy each month. This has led some economists to wonder if we’re heading into a period of slower growth.
At the same time, the Federal Reserve’s fight against inflation which included aggressive interest rate hikes, may soon come to a turning point. Many experts expect the Fed to start lowering rates in the coming months which could help stimulate the economy. But whether that will ease the burden on those needing a second job remains to be seen.