The British labour market is now sounding an alarm that few in Whitehall want to hear. Data from the Office for National Statistics reveals that the number of people holding more than one job has surged past 1.3 million, the highest level since records began in 1992. This is not a sign of a dynamic, flexible economy. It is a symptom of a deep, structural crisis where wage growth has failed to keep pace with the cost of living. Workers are increasingly forced to stitch together multiple income streams just to keep their heads above water, a phenomenon that financial analyst Alastair Thorne describes as 'the great British side hustle trap.'
The national living wage has risen, but so have rents, energy bills and council tax. The net result is that a single job no longer provides the security it once did. The typical multi-job holder is not a young freelancer building a portfolio career. They are often in their 40s or 50s, working a primary job in social care or hospitality, then stacking shelves or driving for Uber in the evenings. The Bank of England’s own monetary policy committee has acknowledged that the labour market is 'unusually tight', but that is cold comfort when real earnings are still below 2008 levels.
Critically, the rise in multiple jobholding correlates with a sharp increase in economic inactivity among older workers. Many have been pushed out of full-time roles due to health conditions or redundancy, only to re-enter the labour market part-time. This is not the flexible, efficient labour market that economists celebrate. It is a market where insecurity has become the norm. The Treasury’s response, a 'Back to Work' plan offering bespoke support, looks woefully inadequate. The problem is not that people lack the will to work. It is that work no longer pays enough.
Capital markets are watching this carefully. A fragmented workforce with diminished purchasing power spells trouble for consumer spending, which makes up about 60% of GDP. Retailers and service companies are already reporting squeezed margins as wage bills rise but productivity stagnates. The FTSE 250 has been notably volatile, with staffing and recruitment firms taking a hit. The gilt market, too, has been edgy. If the government is forced to borrow more to fund further support schemes, yields could rise further, putting pressure on mortgage rates.
Meanwhile, the political narrative is split. The opposition seizes on the figures as evidence of a broken economy. The government insists that the long-term plan is working and that unemployment remains low. But low unemployment masks a crisis of underemployment. The Bank of England’s own Agents’ survey reports that a growing number of firms are having to offer more flexible contracts to attract staff, which pushes more workers into precarious positions.
The housing market adds another layer of misery. With house prices stubbornly high, younger workers cannot save for a deposit while juggling two jobs. The dream of homeownership recedes further. This is not just an economic problem. It is a social and political time bomb. When people cannot afford a stable life despite working longer hours, the social contract frays. The rise of the multi-job workforce is a clear signal: the British labour market is in crisis, and the usual policy levers are not working.
