The number of Americans working multiple jobs has reached a record level as wages fail to keep up with the rising cost of living.
Americans Are Working More but Earning Almost Nothing Extra
According to the latest report from the Bureau of Labor Statistics, a record 8.9 million people, or 5.4% of all employed workers, are working multiple jobs. The average overemployed worker makes $57,865 a year, barely more than the $56,965 salary of single-job workers. Stephen Gilliam, a 45-year-old graphic designer from Augusta, Georgia, finds himself working evenings to pay the bills. “You have to work a lot harder to make ends meet,” says Carolyn McClanahan, a certified financial planner and founder of Life Planning Partners. The average US workweek shrank to 34.1 hours in February. Julia Pollak, chief economist at ZipRecruiter, explains: “If employers are cutting hours due to low labor demand, that's one more reason people take on extra jobs to fill the week and their bank account.”
Restaurants and Small Businesses Are Slashing Jobs
The hospitality and food service industry is taking a massive hit, with restaurants shedding 27,500 jobs in February. Julia Pollak notes, "Restaurant jobs often serve as an entry point into the labor market." Small businesses, particularly in food service, are struggling with high inflation and interest rates. The Commerce Department reported consumer spending dropped in January, marking the biggest decline since February 2021.
Markets Await the Federal Reserve's Next Move
The turmoil in the US job market has caught the attention of financial circles, as all eyes are on the Federal Reserve's interest rate decision. The unemployment rate went up, labor force participation dropped, and the number of part-time workers increased. Julia Pollak sums up: “It suggests some employers are cutting hours rather than jobs outright, as the demand for workers is fairly soft.”
Economic instability in the US requires attention as the rising number of multiple job holders might lead to a decline in the quality of life. The Commerce Department and the Federal Reserve need to take action to ease the situation.
