Numerous Americans are navigating the complexities of debt, which significantly impacts their career decisions and job searches. The prevailing economic environment has led many to adopt strategies that prioritize debt repayment over career satisfaction. According to a Zety report, 38% of respondents have taken on secondary employment to manage their debts, while 37% have accepted jobs outside their preferred industries or roles, driven by the necessity to alleviate financial burdens.
The survey, which included 1,005 U.S. employees, highlighted that 37% of individuals owe less than $10,000, 20% owe up to $25,000, and 10% carry debt balances nearing $100,000. The debt spectrum primarily comprises credit card obligations (71%), followed by mortgage debt (37%), auto loans (30%), and student loans (23%).
These financial pressures underscore a broader issue of insufficient income relative to rising costs and debt levels. Career expert Jasmine Escalera notes that financial constraints not only affect job choices but also hinder personal aspirations such as entrepreneurship, further education, or freelancing, with 17% of respondents indicating they would pursue such goals if relieved of debt.
Secondary employment is often a necessity rather than a choice. Indeed’s data reveals that 52% of workers have taken on side jobs to bridge the gap between earnings and expenses. The persistent fear of economic instability further drives this trend, with 46% expressing concern over potential layoffs. While such measures are immediate solutions, they introduce challenges like increased stress and potential burnout.
For sustainable financial improvement, focusing on enhancing primary income sources is crucial. Instead of solely relying on additional jobs, pursuing raises or promotions within one’s current employment is advisable. If wage growth appears stagnant, negotiating for enhanced compensation packages, including remote work options, stock options, or educational stipends, can be beneficial.
Exploring new roles or industries with promising growth prospects is another viable strategy. The healthcare sector, for instance, added 62,000 jobs recently, demonstrating its potential for those willing to transition. Leveraging transferable skills or engaging in upskilling initiatives can facilitate entry into such burgeoning fields.
While additional income streams can be helpful, it’s imperative to ensure they align with existing capabilities and do not detract from primary employment or life balance. Such structured financial strategies, informed by corporate finance principles, can lead to more sustainable outcomes and better long-term positioning in the workforce.
