According to a recent survey conducted by Deloitte, the younger generations, namely Gen Zs and millennials, are increasingly embracing second jobs due to mounting financial concerns.
Side hustles serve as avenues for individuals to pursue work they genuinely enjoy, but they can also arise from financial necessity, as an increasing number of young people take on additional jobs to address their money concerns.
According to a recent survey conducted by Deloitte, approximately 46% of Gen Z individuals currently hold either full- or part-time jobs alongside their primary employment. The percentage is slightly lower for millennials, standing at 37%.
Deloitte’s 2023 Gen Z and Millennial Survey encompassed responses from 14,483 Gen Z participants and 8,373 millennials from 44 countries worldwide.
Interestingly, both generations have experienced an upsurge in the number of individuals engaging in second jobs compared to the previous year. Among Gen Z, this figure has risen by 3%, while millennials have seen a 4% increase, as reported by the consultancy firm.
According to Michele Parmelee, the global people and purpose leader at Deloitte, Gen Zs and Millennials are increasingly taking on side jobs to make ends meet. These additional jobs often involve selling goods or services online, working in the gig economy as delivery or ride-hailing drivers, pursuing creative endeavors, or creating social media content as influencers.
While earning extra income is the primary reason for having a side job, respondents also reported that it allows them to monetize their hobbies, take a break from their main job, expand their professional networks, and develop skills for potential future careers. About 25% of Gen Zs and 28% of Millennials stated that gaining skills and building relationships is the main motivation behind their side job, while just under a quarter of each generation said that it relates to their hobbies or helps them relax.
Money concerns overshadow all other factors, with 38% of Gen Z and 46% of millennials citing financial reasons as their motivation for taking on additional employment, according to Deloitte’s survey. The primary worry for both generations is the soaring cost of living, with over half of each group admitting to living paycheck-to-paycheck, a 5% increase compared to the previous year.
This issue is exacerbated by persistently high inflation in major economies. In the United States, prices rose by 4.9% annually in April, while the United Kingdom saw a 10.1% increase. In response, young people are increasingly turning to second jobs to mitigate the impact of this cost-of-living crisis. The survey also revealed that they are postponing major life decisions such as homeownership and starting a family, opting for secondhand purchases instead.
The financial insecurity experienced by Gen Z and millennials is burdening them, hindering their ability to plan for the future. Nevertheless, there is a glimmer of hope, as 44% of Gen Z and 35% of millennials remain optimistic that their financial situation will improve in the near future.