‘I know how difficult it can be’: Americans seek parallel maneuvers to fight inflation

By Zoe Han

Millennials and Gen Z are among the most likely to pursue a side job

Do you feel pressured to take on a second job to keep up with rising prices? If so, you are not alone. The cost of living rose 8.2% in September, while wages rose only 5.1%. And there are still jobs to be had.

The labor market remains healthy, at least for now. The economy created 261,000 new jobs in October. The Federal Reserve, meanwhile, fears that strong employment figures will keep inflation at its highest level in 40 years.

The jobless rate rose to 3.7% in October from 3.5% the previous month, the Bureau of Labor Statistics also reported on Friday, as more people lost their jobs and the size of the labor force increased. slightly decreased.

Still, a robust job market and rising prices appear to have convinced 70% of workers — from Gen Z to baby boomers — to consider some kind of on-demand work to supplement their finances over the past year. .

About a third of Americans also said they had pursued some kind of secondary agitation. That’s according to a poll released this week by Prudential Financial, which surveyed more than 4,500 American adults.

People’s bank balances seem to drop as prices rise. The personal savings rate – savings as a percentage of disposable income – fell to 3.3% in the third quarter, from 3.4% in the previous quarter, the lowest since the Great Recession.

So what kind of gigs are people seriously considering and/or pursuing? Some 40% say they seek out “convenience work” such as carpooling and preparing meals, 28% resell old goods and 22% make their own crafts.

Inflation has not affected everyone in the same way. More than half of women surveyed (53%) by Prudential Financial said they could not afford their current lifestyle or could barely get by, while 40% of men said the same.

But people feel empowered and emboldened. “The pandemic has caused workers to rethink what they want from their careers and to make compromises,” Prudential added. “A quarter of Gen Z workers say the past three years have made them want to work for themselves.”

“It can be easy to lose good spending and saving habits,” said Brandon Goldstein, financial planner at Prudential. “As a millennial myself, I know how difficult it can be to juggle financial responsibility and social life.”

Goldstein said the travel, dating and even gifting for the holiday season all add up. “It’s imperative to assess and prioritize what’s essential,” he said, “so you can stick to your budget and not lose sight of your long-term financial goals as well.”

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-Zoe Han

 

(END) Dow Jones Newswire

11-08-22 0934ET

Copyright (c) 2022 Dow Jones & Company, Inc.

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