Understanding the Impact of the Cost of Living Crisis on UK Workers
Recent research from Lancaster University highlights a troubling trend in the UK workforce: despite a prolonged period of wage growth, many employees continue to struggle with financial insecurity. The rise of second jobs, now at the highest level since records began, reflects persistent economic pressures that several segments of workers face daily.
With inflation outpacing wage increases for many, especially those in lower-income brackets, a significant portion of the workforce finds themselves working multiple jobs just to meet basic living costs. This situation exposes underlying issues about wage stagnation, the rising cost of living, and the adequacy of current employment support systems.
The Surge in Second Jobs: What the Data Reveals
According to official statistics, approximately 1.35 million UK workers currently hold a second job. This marks a 10% increase from the previous year—a trend largely driven by economic necessity rather than choice. Workers who earn less than £25,000 annually are disproportionately represented among those taking on extra employment, with many resorting to multiple roles to simply keep afloat.
Interestingly, data shows that men are more likely to undertake second jobs, with 18.6% doing so compared to 3.4% for women, although overall, women remain more likely to hold multiple jobs. This suggests that gendered economic pressures remain a key factor in employment patterns.
Why Are Workers Taking on Second Jobs?
The primary motivation for workers to seek additional employment is financial necessity. Despite some wage increases, for many, these have not kept up with inflation and rising household costs. A survey of 3,796 UK workers indicated that one in six struggles to pay household bills every month—an alarming statistic that underscores how widespread financial insecurity has become.
This trend is not limited to low-paid workers. Even those earning higher incomes report feeling the pinch, though the severity is more pronounced among the lower earners. For example, only 42% of workers earning less than £25,000 feel their pay keeps pace with the cost of living, compared to 73% of high earners.
Implications of Financial Insecurity on Workers’ Wellbeing
The need to work multiple jobs often leads to increased stress, unhealthy workloads, and compromised work-life balance. Lancaster University’s research indicates that younger workers, especially those aged 16-34, are particularly worried about job security and being laid off. Nearly half of 16-24-year-olds express concerns about losing their jobs within the next year, a reflection of economic uncertainty and a competitive job market.
Older workers, particularly those aged 50-60, face different challenges. Many in this group are concerned about the possibility of dropping into poverty or facing difficulties in re-entering the job market if they lose their current employment. The rise in working beyond retirement age is partly due to the need for supplementary income, as many cannot afford to retire comfortably.
The Role of Employers and Policy in Addressing Financial Insecurity
Employers are encouraged to adopt engagement-first strategies focused on enhancing workers’ financial wellbeing. This includes considering at or above inflation pay increases, especially for lower-paid staff, and reviewing employment contracts to promote job security and stable hours.
Government initiatives also play a critical role. Several recommendations from Lancaster University’s research emphasize the importance of monitoring inflation’s impact on vulnerable populations, extending financial support measures like the Crisis and Resilience Fund, and reforming employment laws to facilitate wage growth in vital sectors such as social care and health services.
Addressing the Needs of Older Workers & Youth
Specific strategies targeting older workers include expanding opportunities for career progression and adjusting the pension system to prevent increasing levels of pensioner poverty. For young people, the focus should be on creating sustainable employment through targeted policies, such as extending the youth guarantee program and incentivizing employers to offer long-term, stable roles.
What Can Workers Do?
While systemic solutions are crucial, workers can also take proactive steps to improve their financial resilience. This includes budgeting effectively, exploring additional training opportunities to enhance employability, and seeking advice from financial wellbeing advisors where available. For those already juggling multiple jobs, prioritizing mental and physical health is essential to prevent burnout and maintain overall wellbeing.
Looking Ahead: Building a Sustainable Workforce
The rise in second jobs signals a need for comprehensive policy reforms and employer-led initiatives that focus on fair wages, job security, and financial education. Addressing the root causes of financial insecurity will not only improve workers’ wellbeing but also foster a more stable and productive economy.
As Lancaster University’s Work Foundation emphasizes, raising living standards requires more than just economic numbers—it demands tangible support and strategic investment into the workforce’s financial health. Ensuring that wages keep pace with the rising cost of living remains a key challenge for policymakers, employers, and society at large.
Take the Next Step
If you are interested in understanding the broader implications of economic insecurity or exploring solutions in workforce development, Lancaster University offers a variety of programs and research opportunities. Discover more about funding and support options at Lancaster University and learn how targeted policies can help build financial resilience across the UK.
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