New data from the Australian Bureau of Statistics (ABS) reveals that the number of Australians with multiple jobs has risen to eight per cent and now comprises six per cent of all employed people – 900,000 workers across all industries in Australia.
Dr Evgenia Dechter, Senior Lecturer at the School of Economics, UNSW Business School, noted that this rise in people taking on second jobs is not surprising, with the pandemic opening several new opportunities for a lot of people who were looking to supplement or replace their job.
“While we saw job transitions and business creations slowdown in 2020, it’s clearly been followed up by larger than average movements in 2022,” Dr Dechter explained.
Dr Dechter pointed out that people had more spare time to develop and implement their ideas during lockdown while also experiencing an acceleration in adopting technology.
“In this way, it is meant an increase not just in the number of secondary jobs but also in small business creation. In addition, household savings increased substantially during lockdowns due to precautionary savings and limited spending opportunities,” Dr Dechter said. “This, and the very low-interest rates on loans, could have provided start-up capital to those with a good business idea. The willingness to work a few extra hours is also increasing due to higher uncertainty and cost-of-living.”
Associate Professor Dale Boccabella, who specialises in personal taxation at the School of Accounting, Auditing and Taxation, UNSW Business School says the side hustle phenomenon is nothing new though the rising cost-of-living and opportunities emerging from the pandemic has given it a boost.
“There may be more opportunities these days to do this, as well as more convenience on choice of times to work the second job,” Associate Professor Bocabella said.
Dr Dechter believes that a side hustle can be a rewarding step to take in improving personal finance.
“At different career stages, some people may find themselves not fully satisfied with their job or occupation and want to try something different,” she explained. “Slow entry into another occupation, or becoming self-employed, while keeping the current job allows people to learn about new opportunities and new skill sets while minimising risk of income loss.”
However, Dr Dechter also warns of the challenges in pursuing a side hustle, pointing out that there is more risk associated with business, as well as start-up costs. On the plus side she highlighted the potential for higher profits in the future.”
Associate Professor Bocabella advised that before taking on commitments beyond your primary full-time job, it’s also wise to think over if taking on the extra work will be suitable to your lifestyle and existing commitments.
“Consider the amount of money received from the second job, as well as the costs associated with doing it, which should include input of time,” Associate Professor Bocabella said. “You should also think about the value of the time you spend away from family and friends, and the effect of doing the second job on your primary job.”
