Canadians are under a lot of financial stress these days, but we’re not seeing a rise in defaults. That might have to do with the number of multiple jobs they’re working. Statistics Canada (Stat Can) data shows a big jump in Canadians working multiple jobs in October. The rise puts the level of multi-job holders at the second highest level in history.
Multiple Jobholders
Multiple jobholders are, well, people employed at more than one job. People get second (or third, or fourth!) jobs for various reasons, but not having enough money is usually the driver. Analysts consider this a sign of financial stress when it occurs. We see this at both ends of the business cycle, but especially as we near the top, since the availability of jobs rises.
The need for a second job, and the availability of them, are two different things. During peak growth, the number of multiple jobholders rises to help with expenses rising faster than income. At peak economic growth, there’s also lots of jobs – which makes it easier to grow. During the bottom of the cycle, numbers rise due to unemployment and falling real wages. Sometimes at the bottom, this number falls however – due to a lack of jobs available. That’s only typical of serious economic slowdowns though.
Over 1.1 Million Canadians Have Multiple Jobs
The number of Canadians with multiple jobs is near an all-time high, and is chugging higher. There were 1.14 million Canadians with multiple jobs in October, up 1.49% from the month before. This represents and increase of 5.15% when compared to the same month last year. The growth outpaces population, meaning a higher ratio of households are taking on second jobs.
Canadians With Multiple Jobs
The number of Canadians with multiple jobs in a month, as well as the 12-month simple moving average (SMA).
Source: Stat Can, Better Dwelling.
Last month was the second highest number of multiple jobholders ever. October is just 3,000 jobs lower than the record set in June 2018. Other than that, there’s never been another month with more multiple jobholders.
Also worth a mention is this is the longest stretch of growth for the 12-month trend in this segment, in a decade. The trend first reached positive in September 2015, and continues to this date. The last time we saw a stretch this long, was in 2009. The end of this trend would likely require a downturn, or a surge in income for primary jobs.
Canadians With Multiple Jobs – Percent Change
The 12-month percent change of Canadians with multiple jobs in a month, shown with trend.
Source: Stat Can, Better Dwelling.
This is another indicator that highlights the financial stress households may be facing. This is the second highest level of Canadians taking second jobs. The rate of growth is also far outpacing population growth. An indicator that a higher percentage of Canadians need additional financial help.
Like this post? Like us on Facebook for the next one in your feed.
Does this include driving an Uber and stuff like that?
Only if they report it as a job. It’s my understanding most people don’t report their sidehustle as employment, because it’s not consistent income. A lot of people don’t even report it on their taxes.
That’s just begging to be audited, the CRA will have no problems flagging all people that got paid by Uber and didn’t declare it on their taxes.
Yes, that’s been my second job since February 2019.
Interesting read after the consumer insolvency news popping up everywhere. This is the obvious method of staving off insolvency. When these eventually contract, there might be a little problem to deal with.