By Josh Gordon and Jewel Topsfield
Growing numbers of Australians are taking advantage of the strong labour market by taking on a second job as cost-of-living pressures continue to bite.
Figures from the Bureau of Statistics show a record 974,000 people had more than one job in March this year – equivalent to about one in 15 workers, or 6.7 per cent of total employment.
Chris Tan and wife Joan Latoja both work a second job with Amazon to pay for their children’s extracurricular activities.Credit: Eddie Jim
The greatest numbers were in service sector positions such as healthcare, aged care, disability services, retail and hospitality, with women far more likely to have a second job than men.
Experts say a combination of rising interest rates and other cost-of-living pressures, declining real wages, the rise of the gig economy and a historically tight jobs market has underpinned the shift.
Chris Tan, who works full time as an inventory and logistics manager at a small business in Melbourne, has a side hustle delivering packages for Amazon Flex in his own vehicle.
“My full-time employment pays quite well covering our day-to-day expenses. Flex really covers a lot of our extracurricular activities, especially for my kids,” says Tan, who has been delivering for Amazon Flex (its delivery arm) since November 2021.
“Without the additional income from the second employment, I wouldn’t be able to put my kids into gymnastics training, ballet for my daughter, tutoring on the weekend.”
Tan’s wife, Joan Latoja, works part-time in the same business and also earns extra money with Amazon Flex.
“Just in our spare time. It was probably the most lucrative option of the gig economy that fit into our schedule.”
According to the bureau, between about 1995 and 2019 the percentage of people holding multiple jobs was relatively steady, hovering between about 5 per cent and 6 per cent.
But since the COVID-19 pandemic, the proportion of workers with more than one job has risen to record levels.
Those with more than one job worked an average of 30.8 hours in their main job, plus an extra 8.9 hours on the side. Overall, 7.3 per cent of employed women had at least two jobs, compared to 6 per cent of men.
Victoria had the highest overall number, with 272,200 people juggling more than one position, although the state rate – 7.3 per cent of total employment – was slightly lower than South Australia and Tasmania.
In NSW 267,400 had a second job, or 6 per cent of total employment, while in Queensland the figure was 125,200, or 6.7 per cent.
KPMG urban economist Terry Rawnsley said the latest figures suggested Australia was now challenging the United States on the proportion of people working multiple jobs.
“It’s really all over the place,” Rawnsley said. “You have people doing a few Uber or Uber Eats shifts, but there are also people in professional services doing consulting on the side of their regular job.”
Rawnsley said the rate was probably higher in Victoria because the state economy was more heavily geared towards service sector and white-collar work.
“I think when you look at what sort of people hold a second job – professionals and service workers – I think it reflects the idea that Victoria has an employment structure most aligned to people holding multiple jobs.”
The figures show 9.4 per cent of people employed in administrative and support services roles and 7.6 per cent employed in healthcare and social assistance roles had second jobs.
The figures coincide with a period of historically low unemployment, with the national jobless rate hovering between 3.5 per cent and 4.0 per cent for the past two years, a level widely regarded as representing full employment.
Melbourne University professor Jeff Borland, an expert on the Australian labour market, said there was a strong correlation between people taking on a second job and a labour market where jobs are plentiful.
“When we had shut down in the initial stage of COVID the proportion of multiple jobs decreased,” Borland said.
As the economy recovered and the labor market got stronger, the percentage of people holding multiple jobs rose to slightly higher than it was before the pandemic. “For the last year it has been pretty stable.”
Borland said that with many people working part-time, holding multiple jobs was one way in which they could do more hours of work.
“We do have people working part-time, a decent proportion of whom say they’re underemployed, and multiple job holding becomes a way that that people can adjust their hours upwards when the labor market is strong.”
Despite the strong jobs market, wages have been slow to pick up, while interest rates and other cost-of-living pressures have soared, leading to declining real wages in recent years.
In March e-commerce giant Amazon Australia commissioned YouGov to investigate whether the cost of living was encouraging Australians to supplement their income.
The online survey of 2014 adults found nearly 48 per cent were considering taking on a second job within the next six months.
On average workers were looking for an extra $350 per week to help with rising costs, boost savings or to fund a holiday. Nearly half (46 per cent) of those surveyed earning more than $150,000 per year felt their current income was not enough to keep up with rising costs.
Another survey released in March by comparison website Finder reported 32 per cent of respondents felt financially pressured to work more than one job.
Expert tips on how to save, invest and make the most of your money delivered to your inbox every Sunday. Sign up for our Real Money newsletter.