Debt Influencing Career Choices and Job Hunting, According to Survey
Impact of Debt on American’s Career Decisions and Job Hunting Practices
The Role of Debt in Career Choices and Employment Searches
Increasing numbers of Americans are burdened with debt and it’s shaping their career decisions and job search strategies. Priya Rathod, a job market trends expert at Indeed, comments, “The mounting pressure of debt is dictating why people choose certain careers, remain in jobs longer than desired, or face resistance to career shifts.”
Juggling Multiple Jobs to Pay Off Debt
A recent Zety survey reveals that 38% of respondents confirmed taking a second job to manage their liabilities. A similar portion, 37%, admitted accepting jobs outside their preferred industry or roles to repay their outstanding loans. As for the types of debt, the survey indicates that credit card debt was the most common (71%), followed by mortgage debt (37%), auto loans (30%), and student loans (23%).
Debt Hinders Pursuit of Aspirations
Job seekers appear to struggle with meeting their financial obligations, often at the expense of their ambitions. The Zety survey shows that if not for their debts, 17% of respondents would start a business, return to school, or freelance. “Their financial situation not only impacts their professional life but also their life goals”, adds Jasmine Escalera, a career consultant at Zety.
Managing Debt Through Second Jobs and Income Growth Strategies
Side Hustles: An Increasing Necessity Amid Rising Debt
The decision to secure a secondary job or a side hustle often arises when a worker’s income fails to cover living costs or financial commitments. Indeed’s data reveals that 52% of workers have a side gig to make ends meet. Fear over the state of the economy also drives people to take on extra work, with 46% of polled workers voicing concern about job loss in the next year.
Long-term Strategies for Income Growth
While seeking additional work may seem like a practical solution to debt repayment, experts suggest considering a pay rise or promotion in your existing job first. “Understanding that working more hours is only a short-term solution and focusing on increasing your primary income is a long-term strategy is crucial,” advises Rathod. If wage growth in your company or sector is sluggish, negotiating other aspects of your compensation package or switching industries might be a viable option.
Maximizing Existing Skills and Upscaling for Better Prospects
Consider applying skills in growth-driven sectors like healthcare, which according to the Bureau of Labor Statistics, added 62,000 jobs in May. Exploring how to expand existing abilities or “upskill” can open new doors. If a secondary source of income is still needed, think about utilizing your existing skills and ensure it does not interfere with your primary job or personal life.
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