Commentary
Most Americans aren’t afraid of work. In fact, the American worker is among the top producers in the world. In terms of output per worker, also known as, “per capita productivity,” American workers are among the most productive in the world.
It’s never been any different.
There are a handful of reasons for that, besides the good ol’ American work ethic, which is also a factor. The use of smarter and more efficient machines, for example, has raised worker productivity on the factory floor. The expanded use of computers and apps has also raised worker productivity in both blue- and white-collar jobs.
Doing the Two-Job Hustle
But now, there’s one more reason for such high productivity. More Americans are working two jobs. In 2021, about 22 percent of working U.S. adults had a second place of work. In 2024, that percentage is now 26 percent.As of May of this year, the number of Americans working full-time was just over 133 million. That means that more than 44 million American workers are moonlighting, working extra hours. That’s a big number of second job holders.
What’s more, that number isn’t expected to decrease anytime soon.
Trying to Make Ends Meet
But it’s not out of the love of working up to 60 or 70 hours per week, that’s for sure. The reason is just as basic. More than a quarter of the working population is working a second job because they have to in order to make ends meet. In other words, for 44+ million Americans, working full-time just isn’t enough.
In fact, with the way real inflation is remaining so pervasive and persistent, the number of Americans working a second job may just well go up. Real inflation on basic necessities is nowhere near as contained or mild as some would like to us to believe. Gas prices have doubled since 2021. Basic food prices are much higher as well. Eggs have gone up more than 50 percent, from 2021 to 2024, twice the official inflation rate of 25 percent for food for the same period. Meanwhile, housing prices are up by 54 percent since 2019.
Interest rates, which are the cost of borrowing for business investment and mortgage rates, remain high. So, by the way, does the cost of living. I can’t remember ever paying a seven-plus percent interest rate on a home mortgage, $5 for a gallon of milk, or nearly 30 bucks for a couple of steaks at the grocery store.
What does that mean for the U.S. economy? There are several possible and differing answers that will depend on which data you focus on.
Spending Is Up–So Are Prices
For example, in 2023 and up to March 2024 and adjusting for inflation, U.S. consumer spending went up by a point or two. But after March, consumer spending has been falling. That may be due to the fact that health care, transportation, and insurance costs have all gone up, outpacing rising consumer incomes. Therefore, although incomes and consumption have risen, in some sectors the costs are outpacing incomes—even the incomes of those working two jobs.Another factor driving the rise in two jobs is higher taxes, which leave less take-home income.
Families Bear the Cost
But there’s also another cost that comes with more Americans working two jobs to keep the wolf away from the door: less family time. That’s an important factor to consider, especially for single-parent households. But it’s a bigger deal for some segments of the work than for others.For instance, about 71 percent of Gen Z are working two jobs. Millennials are far behind in the multiple job rate race, with 68 percent of them doubly employed. Nearly half of Gen X workers, about 48 percent, hold down two jobs. These three groups are most likely to have families with children in the home. By contrast, only 32 percent of boomers, whose children are likely grown, are working two jobs.
The Small Business Boom
However, there is one more factor regarding Americans holding down two jobs. That factor is the small business boom that is going on in America right now. According to the U.S. Census Bureau, a record number of new businesses were started in 2023, amounting to 5,481,437 new startups formed in one year alone.This single statistic shows just how powerful the entrepreneurial spirit is in Americans. What’s more, contrary to their reputations as being a bit “less motivated” than prior generations, most of the new businesses are being started by Gen Z adults and Millennials. The fact that both groups are digital natives means that they’re perfectly positioned to take advantage of how easy it is to start an e-commerce business.
Furthermore, in the aftermath of the COVID-19 lockdowns and job losses that came from it, these younger workers are less enthusiastic about working full-time jobs and then being laid off for whatever reason.
That’s smart thinking. Besides, according to the Bureau of Labor Statistics, small businesses are the biggest job-creating force in America, the source of 55 percent of jobs from 2013 to 2023.
Views expressed in this article are opinions of the author and do not necessarily reflect the views of The Epoch Times.
