A growing army of British workers is juggling multiple jobs just to keep their heads above water, new data reveals. The trend, driven by a labour market increasingly skewed towards flexible, low-security work, underscores the trade-offs inherent in the government’s post-Brexit employment reforms. For the City, the message is clear: a more flexible labour force may boost productivity metrics, but it also risks deepening household financial fragility.
According to the Office for National Statistics, the number of people holding more than one job rose by 15% in the last year, reaching a record high of 1.3 million. These “multi-jobbers” now account for nearly 4% of all employed workers, up from 3.2% in 2019. The increase is most pronounced among younger workers, with those aged 25-34 making up a third of the rise. The sectors driving this growth are predominantly hospitality, retail, and gig economy services, where zero-hour contracts and part-time work are the norm.
The government’s recent Employment Bill, which introduced measures to simplify hiring and firing, has been touted as a boon for businesses seeking agility. But for workers, the reality is less sanguine. One such worker, a 29-year-old from Manchester who works as a delivery driver by day and a bartender by night, told this paper: “I live in survival mode. I need two jobs just to pay rent and bills. There’s no room for savings or a sick day.” Her story is becoming increasingly common as the cost of living crisis erodes the value of wages.
From a financial editor’s perch, this is a classic case of labour market efficiency colliding with social sustainability. Lower barriers to hiring have undeniably contributed to the UK’s stubbornly low unemployment rate of 4.2%. But the price is a workforce that is more precarious, with less bargaining power and greater exposure to inflation shocks. Real wages, after adjusting for CPI, have fallen for 18 consecutive months. No wonder workers are taking on extra shifts.
The bond market is watching. The yield on the 10-year gilt has risen 40 basis points over the past quarter, reflecting concerns that a tight labour market will keep wage inflation sticky. The Bank of England, obsessed with its 2% inflation target, has signalled further rate hikes. But higher rates will do little to help the multi-jobber struggling with mortgage payments. Capital flight from UK equities suggests investors are pricing in a consumer-led recession.
Some economists argue this is the unavoidable cost of a dynamic labour market. They point to the US, where flexible employment has long been the norm and multi-job holding is even higher at 5%. But the UK’s social safety net is thinner, and public services are under strain. The government’s fiscal discipline, while commendable on paper, leaves little room for the kind of support that could ease the transition to a more flexible economy.
The irony is not lost on City veterans. The same policies that boost market flexibility and corporate profitability are fuelling a rise in financial insecurity that could ultimately destabilise the economy. Multi-job workers are more vulnerable to economic shocks and less able to invest in skills or housing, which drags on long-term productivity. The chancellor would do well to ponder that as he prepares his autumn budget.
For now, the multi-job workforce is a feature of the UK’s new labour landscape. Whether it becomes a permanent fixture, or a sign of deeper malaise, depends on whether policymakers in Westminster and Threadneedle Street can square the circle of flexibility and security. Until then, millions of workers will continue to live in survival mode.
