More Than 40% of Americans Have Side Jobs to Make Ends Meet

More Than 40% of Americans Have Side Jobs to Make Ends Meet

58 percent of Americans—about 150 million adults—are living paycheck to paycheck.

 

Sitting well over 8 percent year-over-year, persistent inflation is driving many Americans to have side hustles to make ends meet.

In fact, per CNBC, according to a new survey from Insuranks, some 44 percent of Americans are working at least one side job in order to earn extra income. Moreover, 28 percent of respondents admitted that they took on a secondary gig because of high inflation that has reached a forty-year high.

 

The poll showed that those who work a side hustle bring in an extra $483 per month and spend, on average, thirteen hours per week on their second job.

Meanwhile, a separate report released by LendingClub has revealed that largely due to high inflation, 58 percent of Americans—about 150 million adults—are living paycheck to paycheck.

“Consumers have experienced a tough last couple of years as different factors have affected their financial lifestyle, and there seems to be little relief in sight,” Anuj Nayar, LendingClub’s financial health officer, told CNBC.

Adding to the concerns is that even top earners say that they often find themselves in financial trouble. Of those earning $250,000 or more annually, the report found that a whopping 30 percent are living paycheck to paycheck.

Unfortunately, there is a possibility that more financial pain is in the offing, as a key Federal Reserve tracker of economic growth is pointing to an increased chance that the U.S. economy has already tipped into a recession.

The Atlanta Fed’s GDPNow measure now sees second-quarter output declining by 2.1 percent. Considering that the first quarter registered a contraction of 1.6 percent, that would fit the technical definition of a recession, according to the business news outlet.

“GDPNow has a strong track record, and the closer we get to July 28th’s release [of the initial Q2 GDP estimate] the more accurate it becomes,” wrote Nicholas Colas, who is the co-founder of DataTrek Research.

For months, Fed officials have expressed optimism that they will be able to contain inflation without sending the economy into a recession. But, as reported by USA Today, Federal Reserve chair Jerome Powell acknowledged on Wednesday that there is “no guarantee” that can be accomplished without hurting the tight job market.

“We believe we can do that. That is our aim,” he said during the European Central Bank forum in Sintra, Portugal.

But due to the economic headwinds caused by Russia’s invasion of Ukraine, “it’s gotten harder. The pathways have gotten narrower,” he added.

Ethen Kim Lieser is a Washington state-based Finance and Tech Editor who has held posts at Google, The Korea Herald, Lincoln Journal Star, AsianWeek, and Arirang TV. Follow or contact him on LinkedIn.

Image: Reuters.