Yahoo Finance Here’s How Many Americans Needed to Take on a Second Job Due to Inflation
The gig economy was already in full swing by the time U.S. inflation rates soared to historic highs a couple of years ago, but the consumer price spike caused many more Americans to take on side hustles and second jobs. Even though inflation has moved much lower, about four in 10 U.S. adults surveyed by GOBankingRates said they still need a side job to deal with high prices.
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The good news right now is that inflation is well down from where it was at its peak. In April 2024, CNN reported that the year-over-year inflation rate was 3.4%, citing U.S. Bureau of Labor Statistics data. That’s much lower than the 9.2% inflation rate in the summer of 2022.
As for the bad news: Inflation in April hit its highest rate in a year, which means there is continuing uneasiness about where prices are headed.
“The concern here is that we now have a trend, an upward trend in producer prices, which can only be passed through to consumers and result in upward pressure on consumer price inflation over the coming months,” Kurt Rankin, senior economist for the PNC Financial Services Group, told CNN in an interview earlier this month.
It also means the Federal Reserve will keep interest rates high for longer than previously hoped in its quest to tame inflation. The Fed’s target rate for inflation is 2%, but that could still be a long way off.
The combination of stubbornly high inflation and high interest rates has forced a large percentage of the population to find additional sources of income – often through second jobs and side hustles.
In 2023, GBR surveyed 1,021 U.S. adults to determine how Americans deal with financial issues ranging from inflation, student loans, pet costs, car payments, and home expenses.
Among the survey questions was this: In the past year, did you have to take on a side gig because of rising prices/inflation? Here are the responses:
Took on a side gig to have some spending money: 25.47%
Took on a side gig to spend on bills: 14.4%
Did not need to take on a side gig: 60.14%
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The amount respondents earned from those side jobs varied. Another survey question asked how much respondents bring home from their side jobs. For those with side jobs, here are the responses:
Under $300: 20.67%
$301 – $400: 5.88%
$401 – $500: 4.11%
$501 – $600: 2.15%
$601 – $700: 1.08%
$701 – $800: 1.18%
$801 – $900: 1.37%
$901 – $1,000: 1.27%
Over $1,000: 2.15%
Methodology: GOBankingRates surveyed 1,021 Americans aged 18 and older from across the country between October 12 and October 16, 2023, asking twenty-three different questions: (1) How much did you spend on your pet in the last year?; (2) How much have you spent/are you planning to spend on Halloween this year?; (3) How much money do you spend on kid-related activities in a year?; (4) How much do you spend on average on your monthly utility bills (electric, heat/gas, water)?; (5) What spending/saving habits have you had to change in the last year due to inflation/rising prices? (select all that apply); (6) What was the biggest unexpected expense you had this year?; (7) How much do you currently spend on monthly car payments?; (8) Do you live in a single-income or dual-income household?; (9) In the past year, did you have to take on a side gig because of rising prices/inflation?; (10) How much do you bring home from your side job(s) each month?; (11) How much have your overall expenses gone up in the past year?; (12) What is your top financial priorities to end 2023?; (13) What is the top way you’ve earned your money/gained wealth?; (14) Have you started financially preparing for 2024?; (15) How much have you spent on home upgrades in 2023?; (16) How will the resumption of student loan repayments affect your budget?; (17) How much do you currently owe in student loans?; (18) How much do you spend on yourself (not including housing, food, etc.) out of each paycheck?; (19) How much do you spend on online purchases per month?; (20) Where do you shop for groceries most often?; (21) Do you shop around for groceries to get better deals?; (22) What are you currently invested in? (Select all that apply); and (23) What is the current value of your stock investments?. GOBankingRates used PureSpectrum’s survey platform to conduct the poll.
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This article originally appeared on GOBankingRates.com: Here’s How Many Americans Needed to Take on a Second Job Due to Inflation
