Australians ‘scrambling’ for second jobs to deal with rising mortgage repayments and cost of living

Unemployment in Australia rose to its highest level since the pandemic, reaching 4.6% in August, up from 4.5% the month before, according to the Australian Bureau of Statistics. The increase came despite a net gain of 39,000 jobs, because the growth was driven by part‑time positions while full‑time employment fell by 6,000. Analysts say the uptick in joblessness is unlikely to deter the Reserve Bank of Australia from implementing a fourth interest‑rate hike on Tuesday, which would lift the cash rate from 4.35% to 4.6%—the highest level in nearly 15 years. The central bank has warned that inflation remains at 3.5% and is not falling as quickly as hoped, prompting expectations of further tightening amid rising fuel costs and geopolitical tensions.

The labour‑force data also revealed a surge in multiple‑job holding, with more than one million Australians now working a second job, pushing the share of dual‑jobbers to a record 6.9% of the employed. Economists attribute this trend to households scrambling for extra income to offset soaring living expenses and to brace for higher mortgage repayments once rates rise. KPMG chief economist Brendan Rynne highlighted that the participation rate has climbed to just below its all‑time peak of 67.2%, indicating that more people are entering the labour market out of necessity rather than optimism. Westpac economist Ryan Wells added that, although a softer economy would normally suppress job‑search activity, the combined pressure of cost‑of‑living increases and anticipated interest‑rate hikes is compelling more Australians to seek additional work.

The growing reliance on second jobs and the rise in part‑time employment suggest that many households are already feeling the strain of higher inflation and looming mortgage costs. If the RBA proceeds with the expected rate increase, borrowers will face higher repayments, potentially deepening financial stress for those already juggling multiple jobs. The trend also signals broader weakness in the economy, as KPMG’s analysis points to a weakening growth trajectory. Continued pressure on wages and household budgets could further entrench the need for supplemental income, shaping labour‑market dynamics and consumer spending patterns in the months ahead.

⚡ Effects Interpreter