Concerns about Living Cost Pressure Rise as More Australians Take up Second Jobs

Staff member prepares tables ahead of lunch trade at the Southern Highlands Brewing and Taphouse in Moss Vale, Australia, on Oct. 30, 2021. (Lisa Maree Williams/Getty Images)

An increasing number of Australians are taking up a second job, which, to some experts, indicates the impact of rising inflation and costs of living on households across the country.

According to the Australian Bureau of Statistics (ABS), the number of Australians with multiple jobs rose to a record of 900,000 individuals in the June quarter, an increase of 4.3 percent compared to the previous three months and eight percent compared to a year ago.

Lauren Ford, head of labour statistics at the ABS, said the rise coincided with the historical low underemployment rates.

While a low underemployment rate suggests that more of the country’s productive resources are being utilised, workplace experts are concerned that the increased working hours indicate a weakening economy.

Evgenia Dechter from the University of New South Wales said the rising number of people taking up a side job showed a worsening trend in living costs and economic insecurity.

Australians have seen prices of many everyday items soar since early this year due to supply chain disruptions, the war in Ukraine, and the COVID-19 pandemic.

Lettuce skyrocketed from $2.80 to $12 (US$1.83 to US$7.83) at its peak in June, while the national average petrol retail prices currently stand at $1.83 per litre after jumping by 10 percent in the week ending Oct. 2.

Australia’s inflation rate was at 6.1 percent in the June quarter. While the figures for the September quarter have not been released, the Reserve Bank of Australia expected it to reach 7.75 percent by the end of 2022.

To combat inflation, the RBA started an aggressive tightening cycle in May. However, it has begun to slow down due to concerns about a potential recession.

Tax Cuts’ Impact on People with Second Jobs

Meanwhile, as the Australian government is due to present the new budget in a couple of weeks, there have been heated debates about abolishing or scaling back tax cuts.

Labor ministers have been supporting the “stage three” tax cuts, which were introduced by the previous Morrison government. However, some critics said the cuts primarily benefited people with high incomes.

Staff work in a busy Lygon Street cafe in Melbourne, Australia, on Oct. 22, 2021. (William West/AFP via Getty Images)

If the government goes through with the plan, the current 32.5 percent tax bracket will be lowered to 30 percent, while the 37 percent bracket (for people earning between $120,001-$180,000) will be scrapped.

Additionally, the threshold for the 45 percent bracket will be lifted from $180,001 to $200,001.

Dechter said the tax changes could be a boon for people with second jobs as they could make more money before being imposed higher tax rates.

Meanwhile, associate professor Dale Boccabella from the University of New South Wales said people intending to take on a second job should weigh the time required against their other commitments.

“Consider the amount of money received from the second job and the value of the time you spend away from family and friends,” he said.