New data shows there is an increase in the proportion of people in the U.S. who have a second job.

Sometimes people take a second job because they are saving up for something big like a down payment for a house or a wedding. But most people take a second job because they need to.

A new study by Lending Club shows that 61% of Americans are living paycheck to paycheck, meaning they have little or no money left over after paying their essential expenses. This is a staggering statistic, and it is concerning to see that this trend is affecting all income levels, including families making more than $100,000 per year.

This is due to higher price levels, higher interest rates, discretionary spending habits and climbing debt loads. With most or all of a paycheck consumed on these items, it’s not surprising that the savings rate has fallen to 3.5%, which is about a

third of what it was pre-pandemic.

It’s no surprise that more people in the U.S. are working a second job. According to a study by Ernst & Young, about 4 in 10 Gen Z workers have two or more jobs. Gen Z is defined as people 27 and younger. Many of these young adults have student loans and those payments resume in a few days, meaning the need for a second job will undoubtedly increase.

Another interesting factor is that many of these side hustles are made easier by generative AI tools like CHATGPT, according to a separate study by Morgan Stanley. And younger people are more comfortable using the latest technology. This is another dimension in this new world of world of work.

On the one hand, lower levels of “extra” or disposable income means that businesses and the economy suffer because consumers must pull back on buying. It also means a decreased quality of life for those who must work more hours to make ends meet. On the other hand, I wonder if AI will enable people to do more in a given day and reap the financial benefits of that? Time will tell.