Australians seek second jobs as inflation, mortgage costs bite

Key facts

• Australians are taking on second jobs to manage rising living expenses and mortgage costs.
• Australia's unemployment rate increased to 4.6% in August.
• The number of employed people rose by 39,000 in August, with a surge in part-time roles.
• Full-time employment decreased by 6,000 positions in August.
• The labor force participation rate is near an all-time high.
• The number of people working multiple jobs has exceeded 1 million.

Australians are increasingly seeking additional employment to cope with escalating living costs and the anticipation of higher mortgage repayments, according to economists. The nation's unemployment rate edged up to 4.6% in August, surpassing analyst predictions of a steady rate. This figure, combined with persistent inflation at 3.5% and rising fuel costs, has led to widespread expectations that the Reserve Bank of Australia will implement a fourth interest rate hike next Tuesday, potentially raising the cash rate to 4.6%.

Data from the Australian Bureau of Statistics revealed that while the number of employed individuals grew by 39,000 in August, this was primarily due to an increase in part-time employment, which offset a 6,000-person decline in full-time roles. The rise in the unemployment rate, despite job growth, is attributed to more people entering the labor market in search of work.

KPMG chief economist Brendan Rynne noted that these figures underscore a weakening economy, with households feeling the strain of inflation and anticipating higher mortgage rates. This is reflected in the labor force participation rate, which has climbed close to its all-time peak of 67.2%, indicating a scramble for additional income. Earlier this month, ABS data showed that over 1 million Australians are now working more than one job, representing an all-time high of 6.9% of the employed population. Westpac economist Ryan Wells commented that while a softer economy might typically deter job seekers, the current cost-of-living pressures and interest rate rises are compelling more individuals to join the workforce.