The number of workers taking second jobs is at its highest level since records began as workers feel the pinch of rising prices and job insecurity.
According to the Work Foundation at Lancaster University, one in six employees are struggling to pay their bills, and 43% have little or nothing left for savings or holidays at the end of each month.
Only just under half of workers (48%) believe wage increases are keeping up with the cost of living, and 43% expect an above-inflation wage increase over the next 12 months.
The Work Foundation looked at data from the Office for National Statistics, showing that 1.35 million workers now have second jobs. This has risen by 10% since last year, and is the highest since 1992 when records began.
Cost of living
Majority of employees worried about basic living costs
More than 2m left with less than £10 a week after essentials
Older workers and low-paid employees were most worried about their income and less likely to feel supported by their employer, researchers found, and almost half (48%) are concerned about being laid off.
Forty-two percent of workers earning less than £25,000 said their pay kept up with the cost of living, versus almost three-quarters (73%) of those earning over £60,000.
Although the UK is experiencing the strongest period of sustained wage growth for over 20 years, pay increases are still not covering basic living costs for many, the Work Foundation said.
Older workers were more likely to worry about the cost of living, with only 24% of 55 to 64-year-olds expecting an above-inflation pay rise this year.
And while a third of workers are concerned about being made redundant in the next 12 months, this rose to 48% among younger workers (16 to 24).
Ben Harrison, director of the Work Foundation, said: “Raising living standards is not just about figures on a spreadsheet, it’s about workers feeling more financially secure. Four years on from the start of the worst cost of living crisis in a generation, our analysis shows workers continue to feel the impact of nearly 20 years of stagnating pay packets.
“Second jobs are sometimes glamorised as ‘side hustles’ or optional extras but economic necessity is often a key motivation.”
He said the trend reflected that many workers are not earning enough in their main roles to make ends meet, and called upon employers and government to “step in to support workers”.
He added: “Prices may not be rising at such rapid rates now, but these survey results reveal many workers continue to struggle with day to day costs, and have fears for their financial future.
“The government has prioritised increases to the National Living Wage and set out an ambitious agenda to strengthen workers’ rights and make work pay.
“But with many reforms to boost access to better paid and more secure work still years from implementation, there is a real risk that change comes too late for those struggling today.”
Sign up to our weekly round-up of HR news and guidance
Receive the Personnel Today Direct e-newsletter every Wednesday
Reward, compensation and benefits opportunities
Browse all comp and benefits jobs
