Americans are taking extra jobs because of high inflation
The year-end holidays cheer have been replaced for concern in many households as inflation continues on the rise. To be able to afford gifts and basic necessities, a big percentage of Americans are looking for side hustles.
The holidays offer job opportunities, and Americans are trying to make ends meet.
The end of the year is usually a happy period. With plenty of holidays to celebrate among family and friends while exchanging gifts. This year, however, the celebration made way for financial concerns. That’s because a big percentage of Americans are looking for extra jobs.
With the Federal Reserve’s ongoing inflation hike throughout the year, a big part of the population began to worry about how they would make ends meet. That concern grew as the holidays approached due to the price of gifts, food and everyday necessities.
While some are coping with the state of the economy by cutting back costs and finding cheaper alternatives, there’s also an increasing number of Americans that are opting to take extra jobs to boost their income.
According to Bill Adams, the chief economist at Comerica Bank, there’s been a jump of over 165,000 people holding more than one job in November. That is the biggest increase since June, and much higher than the average rise within the last six months.
Who’s looking for extra jobs?
According to a survey at Neighbor.com, approximately 68% of adults either have or are considering an extra job. Such as delivering food, becoming an uber driver or renting out extra space in their homes.
In addition to that, over 40% of adult Americans are looking for a seasonal side gig. Like stocking products at big retailers or shipping packages. More than 50% of the people surveyed said they are planning to work overtime at their current jobs as well.
18 to 40-year olds are still the biggest group looking for extra jobs. However, there’s also been an increase of seniors looking for side hustles. The idea is to help them increase their monthly income, and has been rising for the past six months.
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Why are people looking for extra jobs?
The U.S. is currently going through the highest inflation period in years. The situation has damaged a big percentage of household budgets. In turn, many are racking up credit card debt and going through their savings just to afford everyday necessities.
In a statement released last Thursday, the Commerce Department said the personal savings rate is the lowest in 17 years, with a significant drop in October to 2.3%.
All the while, household debt increased at a worrying pace – the fastest since 2008. Fed data showed that credit card balances rose by 15%, which is the biggest percentage in over 20 years.
The fact that the credit card interest rates increased to the highest levels since the 80s did not keep people from spending. A clear sign that many are struggling to pay for everyday utilities.
According to Neighbor.com, 4 out of 5 people surveyed said that high inflation was a decisive factor for taking extra jobs this holiday season.
How does inflation affect your credit card balance?
Inflation not only affects the price of goods and services, but it also impacts your credit card’s balance and interest rates. If you don’t know how it all works, we can help clear things up. Follow the link below to understand how inflation goes hand in hand with your credit card.
About the author / Aline Barbosa
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