Nearly seven in 10 full-time employees in the United States will voluntarily look for or have already found extra work or side hustles this holiday season so that they can afford their gift-giving plans, according to a new study. The majority admitted that they can’t afford the holidays with only their primary job. Some personal financial advisers and analysts believe that inflation continues to be the catalyst for those looking for additional income.
Those surveyed said they are finding extra hours in one job or in combination with additional work, including extra hours at their current job (44 percent), working for another employer (36 percent), or self-employment (43 percent).
The types of extra work those employees are taking on include delivery services (42 percent), seasonal retail jobs (32 percent), and freelancing (27 percent). Some are also taking on ride-sharing jobs (26 percent) such as Uber or Lyft.
“Picking up seasonal work isn’t a new concept, but there are more options available now than ever before,” Julia Toothacre, chief career strategist at Resume Templates, said in a statement.
Inflation Pressures Affecting Holiday Purchases
According to Ted Rossman, a senior industry analyst at Bankrate, some of the stated need to take on extra work is being drawn from the still-rising cost of goods.
“Prices are up 20 percent since the beginning of 2021, and the average wage gain has been 17 percent. That’s why people aren’t feeling good about the economy. The perception is that people feel like they’re falling behind,” he told The Epoch Times.
“We’ve done separate research about side hustles and seen a greater percentage of people doing that. What we’re seeing is that one job is not enough for a lot of people because costs are up so much.”
Inflation has also caused consumers to rely more heavily on credit.
Miko Love, a personal financial planner at The Budget Mom, said she has more than enough personal experience to know what holiday pressure and financial debt can do to a family. She said her mother worked three jobs to make ends meet, and she herself had to work extra as a single mom.
However, Love said she is concerned about the motivation surrounding getting another job, which is just to spend money over the holidays.
“I feel like moms especially are feeling the pressure of providing the best Christmas for their kids, and we think that when we see it through their eyes, we will do everything we can for them and pay it later,” she told The Epoch Times.
“We need to look at what we’re spending our money on that brings us to the tipping point where you feel like you need that second job.”
Morgan Brown, a personal finance coach at Your Money Project, agrees that the current economy has made it more challenging for holiday shoppers to reduce their spending. Still, those choices tend to reflect money management issues throughout the year.
“I agree there’s a factor of inflation involved. But I also think it comes down to year-round consumer habits and making better decisions,” she told The Epoch Times.
“It’s more important now than ever to make a plan and stick to it. People haven’t paid off their credit cards, and auto loans are the second-largest debt they have. You have to sit down and be realistic and make a list of who you want to give gifts to. I had debt too and worked when they needed holiday help at Crate & Barrel and managed to work myself out of credit card debt.”
However, according to Rossman, the holiday spending habits and pressures and the need to take on more work are directly related to inflationary pressures.
“The American way is to splurge,“ he said. ”But to be fair, a lot of people have told us they are cutting back. There’s a perception out there that though they feel they’re cutting back, inflation has caused them not to.”
