Cost of living crisis forces 1.4 million Aussies to get second job

As many household budgets stretch towards breaking point, new research has revealed millions of Australians have been forced into working more to cope with financial stress.

A survey by comparison site Finder showed one in four people, the equivalent of 4.8 million workers, have taken on a second job, are working longer hours or even come out of retirement to make ends meet.

Food and energy prices continue to soar, and paying mortgages or rent has become increasingly difficult for many over the past year.

A worker at a supermarket. — Many Australians are looking to pick up extra cash through working a second job. (Janie Barrett)

The survey of 1078 respondents found that 14 per cent of workers are now toiling longer hours to bring in more cash.

A further 7 per cent – equivalent to 1.4 million people – have gone further, taking on a second job to offset rising costs.

Around 3 per cent of people said they had no option but to take the radical step of coming out of retirement to bolster their finances, the survey said.

A confluence of economic factors has hit household budgets hard.

Last week Australia’s unemployment data surprised many analysts by rising to 3.7 per cent, and that number is tipped to worsen over the year.

In an effort to rein in inflation, the Reserve Bank has bumped up the cash rate 11 times times in the last 12 months.

The latest increase in May added $82 to monthly repayments on a $500,000 loan.

Compared to April last year, borrowers are paying an extra $1133 in mortgage payments, or a whopping 54 per cent more.

There is no relief for tenants either, with the rental market at near-record highs in many capitals and supply of stock under intense pressure.

“Living frugally is not enough as paying for everyday basics is becoming an impossible task for many of us,” Finder’s Sarah Megginson said.

“Households are having to buckle down and find ways to increase income as inflation increases the cost of everything from groceries and petrol to energy and insurance.”

Finder’s research also found one in five Aussies are thinking about finding extra work to keep their head above water.