A growing number of Americans with college degrees are turning to multiple jobs to stay financially afloat, according to a Federal Reserve analysis. This trend, often referred to as overemployment, is driven by economic necessity, career advancement, and the rise of flexible remote work opportunities.
Record Number of Americans Holding Multiple Jobs
The February 2024 jobs report from the Bureau of Labor Statistics (BLS) revealed that 8.9 million workers were juggling multiple jobs, marking 5.4% of the total workforce—a level not seen since April 2009, during the Great Recession.
A deeper analysis by the Federal Reserve Bank of St. Louis found that the percentage of multiple jobholders with a college degree has increased to 50.2% in 2024, up from 50.0% in 2023 and 45.1% in 2019. This steady rise indicates that more educated workers are supplementing their income with side hustles, freelance gigs, and second jobs.
Why More Americans Are Turning to Overemployment
The reasons behind this surge in overemployment vary. For some, taking on multiple jobs is an opportunity to explore new career paths or earn extra income through freelancing and remote work. Others are driven by economic pressures, including:
- High cost of living – Rising housing costs, inflation, and stagnant wages are making it harder for single-job earners to make ends meet.
- Debt repayment – Many professionals are using second jobs to pay off student loans, credit card debt, and mortgages.
- Job insecurity & reduced hours – Employers cutting back on full-time positions have left many workers seeking part-time or freelance work to supplement their income.
Financial Challenges of Overemployment
Despite working longer hours, the financial payoff for overemployed workers remains relatively low. The Federal Reserve report found that individuals with multiple jobs had an average annual income of $57,865, only slightly higher than those with one job, who earned $56,965.
Certified financial planner Carolyn McClanahan, founder of Life Planning Partners, noted that wages haven’t kept up with inflation, forcing Americans to work harder just to maintain a traditional lifestyle.
“If you’re going to try to have some semblance of a traditional life with kids, a house, and transportation, it takes a lot of money to do that,” McClanahan explained.
The Future of Work: Flexibility vs. Necessity
According to ZipRecruiter chief economist Julia Pollak, the rise in multiple jobholders is both a challenge and an opportunity. On one hand, remote and flexible jobs allow professionals to take on side hustles, such as consulting, gig work, and freelance projects. On the other hand, many workers are forced into overemployment due to financial hardship.
Moreover, the average workweek for private-sector employees has slightly declined, with workers clocking 34.1 hours in February 2024, down from 34.3 hours a year prior. This reduction in hours has also contributed to the rise in multiple jobholding.
“If employers are cutting hours due to soft demand for labor, workers are taking on additional jobs to fill their schedules—and their bank accounts,” Pollak said.
Bottom Line
The rise in overemployment among college-educated workers reflects deeper economic challenges, including stagnant wages, inflation, and job insecurity. While flexible work opportunities have made it easier to take on multiple jobs, many workers are struggling to keep up with financial demands.
As the job market evolves, balancing career growth, financial stability, and work-life balance remains a significant challenge for millions of Americans.
