Americans Find Themselves Juggling Multiple Jobs to Stay Afloat
In recent times, an increasing number of Americans find themselves juggling multiple jobs to stay afloat financially. TheSmartAsset, committed to providing free financial education and connecting individuals with trusted fiduciary financial advisors, delves into this growing trend.
A Surge in Dual Employment
The latest data from the US Department of Labor reveals a startling reality: nearly 8.4 million Americans held multiple jobs as of October, marking the highest figure since the pandemic’s onset. This trend is particularly pronounced among women, with nearly 6% engaging in more than one job, compared to 4.7% of men.
Inflation: A Driving Force
The root of this shift can be traced back to soaring inflation rates. Despite a recent slowdown, inflation remains a significant burden for many households. Non-profit organizations, such as the United Way, have observed that wage growth is struggling to keep pace with inflation, complicating their efforts to assist families in need.
The Role of Remote Work and Layoff Fears
The flexibility of remote work has opened doors for many to manage multiple jobs from home. Additionally, concerns about potential layoffs are prompting some to seek supplementary employment. However, Nela Richardson, Chief Economist at ADP, notes that layoffs are currently at a historical low, with companies more inclined to retain and even increase salaries for their employees.
Economic Indicators and Federal Actions
The US economy added only 150,000 jobs in the last month, the smallest increase since June, hinting at an economic slowdown. This could be a sign that the Federal Reserve’s measures to control inflation are taking effect. The Fed has raised interest rates 11 times since March 2022, aiming to curb the economy and manage inflation, which, although reduced from a peak of 9.1% in June 2022, remains above the desired 2% target.
Statistical Insights
Bureau of Labor Statistics data shows that over 400,000 Americans are engaged in two full-time jobs. US census data suggests a higher prevalence, with estimates of 7.8% (about 13 million workers) holding multiple jobs in 2018. These figures likely underestimate the true extent, as they don’t fully account for self-employed and gig workers.
TheSmartAsset’s Perspective
At TheSmartAsset, we recognize the challenges faced by those working multiple jobs in today’s economic climate. Our mission is to provide resources and guidance to help individuals navigate these tough financial waters and to connect them with professional advisors who can offer personalized, fiduciary advice. It’s about empowering individuals to make informed financial decisions, even in the most challenging of times.
