Marvin OnumonuWorkers are still struggling to cover basic costs, with many finding it hard to pay their bills, research from the Work Foundation found.
One in six workers said they struggled to pay their bills each month, and two in five said they had little money left for savings or holidays.
Only half of those surveyed believed wage increases were keeping up with the cost of living, and just 43% expected an above inflation pay rise in the next year.
Low paid workers felt the most pressure, with only two in five of those earning under £25,000 saying their pay kept up with the cost of living, compared to 73% of higher paid workers.
The Work Foundation pointed to recent Office for National Statistics (ONS) figures which showed 1.35 million people had second jobs, up by 121,000 in a year and the highest level since records began in 1992.
Ben Harrison, director of the Work Foundation at Lancaster University, said: “Raising living standards is not just about figures on a spreadsheet, it’s about workers feeling more financially secure.
“Four years on from the start of the worst cost-of-living crisis in a generation, our analysis shows workers continue to feel the impact of nearly 20 years of stagnating pay packets.
“Second jobs are sometimes glamorised as side hustles or optional extras but economic necessity is often a key motivation.”
Harrison added: “Despite a period of sustained pay increases, the growth in second jobs points to continued cost-of-living pressures that mean some workers are struggling to make enough money in their main roles and are taking on additional jobs to make ends meet.”
Matt Russell, CEO at Zest and Epassi UK, said: “High living costs continue to pile more pressure on household finances and employees.
“Our research shows that six in ten employees aged 18-34 are demanding their employers provide financial support with energy bills this year.
“Given one in five (19%) firms admit that they’re struggling to keep up with competitors who are raising salaries, pay rises look unlikely for millions of employers.”
Russell added: “However, employers need to ensure they are supporting employees if they wish to retain talent, they need to turn their attention to cost-effective financial rewards such as salary sacrifice which benefits both employer and employee by boosting employee finances and reducing the employer National Insurance burden.
“With seven in ten (71%) employees saying that the high cost of living has meant that company benefits have become more important to them when deciding where to work, paying greater attention to these types of benefits can help lift staff morale while providing cost-effective financial support.”
