Australians are increasingly taking on second jobs to cover rising living costs and prepare for higher mortgage payments, according to new economic data. Source: theguardian.com.
Unemployment Rises to Pandemic-Level High
The unemployment rate in Australia climbed to 4.6% in August, the highest level since the pandemic began.
Analysts say the increase reflects a surge in people entering the labour market, not a weakening of overall employment.
More People Working Two Jobs
The share of employed Australians working more than one job reached an all-time high.
For the first time, over 1 million Australians are working multiple jobs, a trend that has intensified since 2022.
Why Are People Taking On Second Jobs?
Households are feeling the impact of higher inflation and rising mortgage costs.
As fuel prices and other expenses climb, many families are seeking extra income to cover daily costs and future mortgage increases.
According to KPMG’s chief economist Brendan Rynne, this reflects a broader trend of households ‘scrambling’ to find more income.
Employment Trends Show Mixed Signals
While total employment rose by 39,000 in August, this was largely driven by part-time work.
Full-time employment declined by 6,000, suggesting a shift in how people are accessing work.
Experts say the rise in job participation shows more people are entering the workforce, even if they are not in full-time roles.
Central Bank Hikes Expected to Continue
The Reserve Bank of Australia (RBA) is expected to raise its cash rate next Tuesday.
Officials have warned inflation remains too high at 3.5%, and does not appear to be declining as hoped.
What This Means for Households
Higher interest rates mean mortgage repayments will increase, putting more pressure on household budgets.
With inflation and interest rates both rising, families are under increasing financial strain.
Second jobs are becoming a common strategy to maintain financial stability.
What to Watch Next
Market watchers will closely monitor the RBA’s next decision, especially as the Melbourne Cup approaches.
Financial institutions may also adjust lending criteria in response to rising household stress.
For self-employed individuals, securing a better mortgage rate may be more difficult amid tighter lending conditions.
Learn how to get a better mortgage rate if you’re self-employed.
- Unemployment rate rose to 4.6% in August, the highest since the pandemic.
- The share of employed Australians working more than one job reached an all-time high.
- Full-time employment declined, while part-time work increased.
- The RBA is expected to raise interest rates next Tuesday.
- Households are under increasing financial pressure due to inflation and rising mortgage costs.
These trends highlight a growing challenge in the Australian economy: balancing rising living costs with stable employment and affordable credit.
While the data shows a rise in job participation, it also reveals that many people are working harder to make ends meet — a sign of broader economic strain.
Sources & further reading
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