More taking up second job, another sign of a tight US job market
MORE Americans are getting a second job, and it isn’t necessarily a sign of financial hardship.
In a country where there are still almost two open positions for every person who wants one, many are taking on side hustles to make the most of flexible working arrangements, earn some extra cash or pursue their passions.
“Public perception is that people take on multiple jobs when the economy is bad because they’re not earning enough in their job,” said Julia Pollak, chief economist at jobs website ZipRecruiter. The reverse is often true, she said. “People take on additional jobs when there are additional jobs to be had.”
The number of multiple jobholders spiked at the end of last year to more than 8 million, with the share reaching 5 per cent of all employed for the first time since the start of pandemic, according to US Labor Department data.
The burden of inflation has forced many households to collect additional pay cheques to make ends meet. But the increase in people working two or more jobs by itself isn’t a recessionary signal.
The number of multiple jobholders declined ahead of and during each of the last three recessions since 2001. And the prevalence of workers with several jobs is more common among those with a higher level of education, according to a 2015 study from the Bureau of Labor Statistics, suggesting it’s more a matter of opportunity than financial necessity.
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With the rise of remote and flexible work making it easier to juggle several jobs, government data might be underestimating the extent of the gig economy. In their latest work-from-home survey, economists including Stanford University’s Nicholas Bloom found that nearly 10 per cent of workers reported having a main job plus at least one other position.
The opportunity was ripe for Jenny Smolensky, who took up a part-time job as a ski instructor when she moved to Rochester, New York, from Manhattan during the pandemic. After working fully remote during the day as a recruiter, she teaches Thursday nights and Sundays from November to April at a nearby mountain, and earns a sought-after season ski pass in addition to minimum wage.
“We work to live, and my boss understands having passions outside my 9-5,” said Smolensky, 28. “It brings me joy and happiness and purpose outside of my professional job.”
Not everyone has that luxury, especially with the worst inflation in a generation. More than a third of households in a Census Bureau survey last month said paying for typical expenses was either “somewhat” or “very” difficult.
For Dwanet Perry, a 26-year-old single mother in Queens, working for food-delivery service DoorDash has been there for her whether she’s had a full-time job or not. While her work as a social-media manager for a hair salon in Brooklyn covers big bills like rent and car insurance, she relies on her secondary income for things like gas, food and clothes for her son.
“I definitely see it as something that will always keep me grounded,” Perry said. “Without it, I don’t know how I would be able to make money and survive because everything is so expensive.”
With many companies asking workers to go back to the office, those who capitalised on remote work to get a side gig may have to give it up. Postings offering remote work accounted for about 13 per cent of available jobs in December, according to a LinkedIn analysis. In March 2022, that share was above 20 per cent.
Officials at the Federal Reserve view the persistent strength of the job market as reason to hike interest rates even further to tamp down demand and inflation – which could trigger a rise in unemployment.
“If in a year from now the labour market continues to cool, do we see that prevalence of people working more than one full-time job ticking down?” asked Guy Berger, principal economist at LinkedIn. “The question is whether it starts turning, and it hasn’t yet.”
For now, Michael Wolf is living the best of both worlds. His woodworking hobby turned into a side hustle that now constitutes about 15 per cent of his total income. It has helped cover everyday expenses and provide a stable cash cushion for his family.
Wolf grew up around his father’s wood shop and enjoys repurposing materials, like panels from a barn or an old steel chest, and turning them into new pieces of furniture.
“Now you can get paid for doing things you love,” said Wolf, 51, who lives in central New Jersey. “That’s not a job, is it?” BLOOMBERG
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