A businesswoman has revealed how corporate colleagues are being forced to take second, third and even fourth jobs to ease the financial strain of higher interest rates.
Belinda Eden, the founder of Victorian company Troop Events, told Daily Mail Australia that she took on bankers and even workers on the brink of retirement in jobs such as dishwashers, waitresses and bartenders.
The number of multi-job workers has been steadily increasing alongside rising mortgage payments and rising inflation, according to recent figures from the Australian Bureau of Statistics.
The trend comes after Reserve Bank-raised interest rates have risen for 10 consecutive months, with the last just last month, and inflation rose to a high of 7.8 percent last year.
Founder and director at rural-Victorian, Troop Events, Belinda Eden (pictured) has seen a trend where more people are applying for jobs at the company and opting for ‘gigs’ with more hours
These rate hikes were halted on Wednesday after inflation eased to 6.8 percent in February, which is still above the RBA’s target of 2 to 3 percent.
One of the effects of nearly a year of continued interest rate hikes is that Australians have found new ways to meet their skyrocketing mortgage payments, including taking on additional gig economy jobs such as drivers, pet sitters and event catering.
The trend has also reached Troop Events, with many of its 200 employees relying more than ever on the ad hoc business to provide jobs with longer hours to make more money.
“There is definitely more demand for longer hours,” Ms Eden told Daily Mail Australia.
“I have a contract with my staff for a minimum three-hour shift… but if you have an eight-hour shift available elsewhere, they’ll take it.
‘[They’re] try to work as many hours as they physically can.’
The number of multi-job workers in Australia rose 2.7 percent in December and now makes up just over 6.5 percent of Australia’s workforce, which is about 925,000 people.
Many of her employees use the business as a second, third or even fourth stream of income as many struggle to pay bills and find or pay for rental properties (pictured, Ms. Eden with staff)
Ms Eden (pictured, front) claims staff are ‘trying to put in as many hours as they physically can’ to keep up with the impact of the explosive inflation on cost of living and interest rates
Ms Eden said it is difficult to accommodate the amount of staff who want longer hours, although many are struggling to make ends meet.
“There’s a lot of juggling with staff because the cost of living is extraordinary,” she said.
“I now have a number of employees who even help other employees with temporary accommodation, because they have not been able to get their rent and such.”
“Financially there is also a lot of pressure. If you don’t have enough money to stand on your own two feet, you have to rely on others, and that’s 98 percent of my staff.
“Even if they form a family income, they will still have to get more hours or more work elsewhere to pay for living expenses.”
Unlike the average young hospitality worker, Troop Events has seen an influx of a wide variety of people catering events for them.
‘[We hire] a guy who works at a bank and used to work in the hospitality industry just jumped in every once in a while because he just likes the vibe,” Ms Eden said.
The company is also hiring a woman who turns 60 this year who describes Ms Eden as “one of my hardest workers, she even runs around with some of the youngsters.”
Figures from the Australian Bureau of Statistics show that the number of multi-job workers has steadily increased with interest rates rising as staff struggle to make ends meet (stock image)
However, Ms Eden was also aware of increased taxes economically stifling those who hold more than one job.
“The second job tax is the biggest problem, you certainly get a bonus at tax time, but less money in your pocket makes it difficult,” she said.
“People say, ‘I need to get another job because I need more money because I don’t have enough’ or ‘I don’t have that many hours where I currently work,’ but there’s that barrier to having to live.”
The Australian tax authorities are proposing that multi-job workers should not claim the tax-free threshold on additional income streams, meaning the usual no-tax buffer of around $350 per week for an $18,200 salary would no longer apply.