Salaried workers rush to take on multiple jobs amid soaring interest rates

The Korea Times

The Korea Times

Finance

Sun, October 1, 2023 | 15:26

Salaried workers rush to take on multiple jobs amid soaring interest rates

Posted : 2022-09-18 08:19

Updated : 2022-09-19 15:46

Food delivery is one of the most popular side jobs prevalent in Korea. / gettyimagesbank

By Lee Min-hyung

Salaried office workers are in a rush to take on side jobs to make extra money amid the soaring costs of living and rising inflationary pressures.

Those in the middle and lower income brackets say holding multiple jobs is necessary during this period of rapid interest rate hikes. The rapid pace of monetary tightening by the Bank of Korea comes as a serious fear factor for most households, as the consecutive set of rate hikes in recent months has pushed them to pay a lot more for mortgage loans. Rising prices have also resulted in a spike in basic costs of living, represented by gas and grocery price hikes.

According to data from Statistics Korea, the number of multiple job holders soared to a record high of 629,610 in May. This is eye-catching growth of around 65 percent when compared with the pre-pandemic period in January 2020.

An office worker at a mid-sized company here said he had no choice but to have an extra job to afford the soaring costs of living for his three-person household.

"I rarely spend for myself, but my monthly pay is not sufficient to support my family at a time when the interest rate for mortgage loans and other prices are rising rapidly," the office worker in his 40s said on condition of anonymity. "I promoted my English-speaking capability at a private tutor-matching platform, and now teach a young unemployed person after work. I keep thinking of how I can find other side jobs that are high-paying and less time-sensitive, so that I can make extra money in a sustainable manner for more years to come."

Other data also showed that prices are rising at an alarming pace. Consumer prices in July increased 6.3 percent from a year earlier. This is the highest increase rate since November 1998 when the economy was hit hard by the Asian financial crisis.

As the unfavorable macroeconomic situation affects people from all age groups, those in their 50s and 60s are also seeking to have side jobs that will offer stable revenue sources.

"I work as a chauffeur in pairs with my friend," said a 50-something chauffeur who plans to retire from his career as an office worker. "The friend has a car and picks me up after I drive my customers at night, and we move to another place and do the same thing. We are aware that the younger generation faces a tough reality due to soaring housing prices and inflationary pressures, but the older generation also has to have stable income sources even after retirement as the population ages."

Others choose to tighten their belts, rather than finding side jobs, as they believe spending less means earning more.

"Many people think of ways to expand their revenue streams by doing more jobs, but I prefer to save more by cutting unnecessary living costs and reducing the frequency of private gatherings," a 35-year-old salaried worker said.

"I used to do side jobs just like other people in the past, but I do not any longer," he said. "Instead, I study more about investments. Investing in assets that offer stable incomes ― such as dividend stocks ― appears more attractive to me."

A one-man media business gains traction via YouTube. gettyimagesbank

More young people are also seeking fresh opportunities by creating YouTube channels where they upload stories about their personal lives or offer tips for people's daily lives.

"Even if it is very tough for ordinary people to generate a significant amount of revenues from their YouTube channels, some of them keep uploading content about what they love and what they are good at," an English instructor in his mid-30s said.

"The good side of YouTube is that it has a potential to become a jackpot business, even if it does not generate immediate returns in its early phases," he said. "But more and more young people are creating channels while maintaining their own jobs hoping that it can become one of their future revenue pipelines."

Data from the statistics agency showed that the number of self-employed here is on the decline amid the economic slowdown. The figure reached around 5.63 million in 2018, but declined to 5.51 million last year. But the outlook for the self-employed remains bleak due to the ongoing pandemic, rising prices and high interest rates.

As of the end of the first quarter, the total amount of loans that the self-employed received came in at 960.7 trillion won, according to data from the Bank of Korea. This figure is an increase of 40.3 percent from the end of 2019, before the pandemic broke out and its fallout spread throughout the global economy.

"Most small business owners are moving to cut their fixed costs by reducing the number of employees, as part of efforts to brace for the negative economic outlook," a coffee shop owner in her 40s said.

mhlee@koreatimes.co.kr