PHILADELPHIA (KYW Newsradio) — If you’re working a side gig on top of your full-time job, you aren’t alone. Side hustles are helping some consumers stay afloat, but a Philadelphia-area economist says there are other factors to consider.
Experts agree that 2022 was a stand-out year with its high rate of inflation. Two months into 2023, it’s still a problem. Although it has eased a bit — the cost of groceries, housing, transportation, and many other daily needs is still higher than in recent years.
A recent report from the U.S. Department of Commerce showed consumer prices rose in January at its fastest pace since June.
To help keep up, about 10% of U.S. workers report having a main job, plus a smaller one on the side, according to a recent work-from-home survey.
“I'd say, for a short period, that can help you get by,” said Scott Deacle, an Ursinus College business and economics professor.
Related
He says working part time for an extra couple hundred bucks can make a difference for some people — but it could come with a different type of cost.
“You also have to think about some of the trade offs, too. Like if you don't have time on weekends to, say, grocery shop, or cook meals, then are you going to spend more money on restaurant meals? Or are you going to have to find some extra ways to find some child care? Is that going to eat into some of the extra money you're going to use, too?”
There could also be hidden costs in the purchasing decisions consumers are persuaded to make at times of high inflation.
“Another thing people do besides find second jobs when they hit some inflation is that they substitute the types of goods that they buy,” he said. “They substitute the cheaper goods for the more expensive goods.”
Related
And one part of the conversation Deacle feels is missing in a lot of cases is the decline in the amount of overtime pay available to workers.
“In some cases, people could, in the past, work more at their first job, get the extra money they need. But now it won't really do the same for them,” he said.
He says some federal regulations that cover when employers must pay their employees for overtime haven't really kept up.
Related
