Americans Looking for Extra Work to Cope With Rising Inflation: Survey

Twenty dollar bills are counted in North Andover, Mass., on June 15, 2018. Elise Amendola/AP Photo

Millions of Americans are working at side hustles or gig jobs due to economic challenges over the past two and a half years, according to recent survey by workforce service platform Bluecrew.

As unemployment rates began to recover from the pandemic and Americans returned to work, inflation rates began to soar to the highest level in over 40 years, and 57 percent of Americans say they’ve sought out extra work at some point over the past year, the Bluecrew survey reported.

“Rapid inflation is forcing people to look at not only how they’re spending their money, but also how they’re earning their money,” Matt Laurinas, chief customer officer at Bluecrew, told CNBC.

Laurinas noted that many of those looking for work are already working 40 hours during the week and are taking up extra shifts or gig work on nights and weekends.

Many of those surveyed said that pay is the key factor when accepting a new job, followed by location, schedule flexibility, and opportunities for growth.

Companies have been facing a severe labor shortage, with workers flooding the jobs market and the unemployment rate dropping to 3.7 percent, close to pre-pandemic levels.

Meanwhile, inflation rose to 8.3 percent in August compared to the same time in 2021, leading the Federal Reserve to aggressively raise the borrowing rate.

The Fed implemented another round of 75-basis-point rate hikes last week, resulting in interest rates of 3 to 3.25 percent.

Bluecrew surveyed more than 1,000 U.S. professionals from various backgrounds, from those currently employed—full time and part time—to those unemployed but actively seeking work.

At least 85 percent told Bluecrew that they were forced to adjust their spending habits due to rising costs.

Prices for groceries, gas, health care, and housing have skyrocketed over the past year.

Seventy-two percent of respondents said that inflation has affected how they view their current positions, while 57 percent have sought out new or additional work in the past year.

Another 65 percent said they expect to look for new opportunities in the coming months and into 2023 to keep pace with rising prices.

This could go up if the economy veers into a serious depression, causing the unemployment rate to rise.

The Inflation Gig Economy

According to the latest August data from the Federal Reserve Bank of St. Louis, 4.9 percent of employed Americans currently hold multiple jobs, including a record high of 440,000 people who are holding two full-time jobs.

Many of those who retired from their jobs or quit working during the pandemic have returned to the workplace due to high inflation this year.

These concerns have partially led to a rebound in labor force participation rates and the number of hours people want to work, according to a Sept. 21 article in The Wall Street Journal.

Employers have been dealing with the tight labor market by raising pay, offering bonuses, and having more flexible work schedules to hire and keep more talent.

However, signs that the economy is stagnating amid recession level growth rates are beginning to have an effect on the job market.

The drop in consumer spending has led to some industries, like retail and real estate, to scale back, after being hit with major financial losses in recent months.

Walmart Inc. announced plans to only hire 40,000 workers for the holiday season, down from the 150,000 seasonal and 20,000 supply chain workers employed in 2021.

“Plunging real wages and soaring credit card debt, as people work multiple jobs, proves the labor market is weak,” economist Peter Schiff wrote in a tweet.

Economists like Schiff believe that the apparent boom in the labor market is weaker than it actually appears and is vulnerable to take a beating in the coming months.