New Research Explores the Impact of Holding Two Jobs in 2025

In 2025, more Americans than ever are working two jobs. For some, it’s a way to keep up with rising living costs; for others, it’s a path toward personal and professional growth. But this growing trend is reshaping the workplace in ways many employers can’t afford to ignore.

As millions of employees take on side gigs or second jobs, questions about burnout, work-life balance, and organizational policies are coming to the forefront. In this article, we’ll take a closer look at who is moonlighting today, why this trend is on the rise, the challenges it creates, and how employers can respond to better support their workforce.

Moonlighting refers to working a second paid job or gig in addition to one’s primary job. Traditionally, it meant taking on evening or weekend work, like a teacher who bartends at night to supplement income. Today, it can also include freelance projects, online businesses, gig economy work, or creative endeavors.

For HR professionals and employers, the topic of moonlighting often sparks questions about:

• Work-life balance and burnout risks.
• Job performance impacts.
• Potential conflicts of interest.
• Whether to implement formal policies around outside employment.

At its core, moonlighting is a response to both financial pressures and career motivations. It’s a way for workers to take control of their economic security or professional growth in an evolving labor market.

Economic insecurity remains one of the primary drivers behind the rise in moonlighting. According to the American Psychological Association, more than 54% of US workers report stress related to job insecurity. At the same time, persistent inflation and skyrocketing housing costs are pushing many employees to seek supplemental income simply to keep up with basic living expenses.

For these workers, taking on a second job can serve as a financial safety net and source of peace of mind during uncertain times.

But money isn’t the only motivator. Many workers turn to second jobs for personal and professional reasons, such as to:

• Explore new interests or passions.
• Develop skills for career advancement.
• Test entrepreneurial ideas.
• Build a more diverse and resilient income stream.

Gig economy platforms, remote work options, and online marketplaces make it easier than ever to launch freelance careers or side businesses.

For some, moonlighting becomes a stepping stone to a new career path or business venture. But without clear boundaries, the risks remain: even when second jobs are personally fulfilling, the potential for burnout and work-life imbalance is still very real.

If you’re looking to help create healthier work-life balance for employees, our Careerminds leadership development programs are designed to equip your leaders and managers with the skills and strategies they need to support employee well-being and productivity.

While holding two jobs may not harm an employee’s performance at their primary workplace, research continues to show that the mental, physical, and emotional strain of managing multiple roles is contributing to a growing crisis of burnout and work-life imbalance among American workers. 

These challenges are particularly acute for women, who are more likely to face a “double burden” of juggling paid employment with unpaid caregiving and domestic responsibilities.

This combination often leads to:

• Chronic stress.
• Exhaustion.
• Increased risk of long-term health issues.
• Strained personal relationships.

For younger workers, the risks are rising fast. Burnout is now peaking earlier than in previous generations: it typically hits around age 25 among Gen Z and Millennials, compared to an average peak of age 42 in the previous decade.

This impact is showing up in career decisions as well. A growing number of employees, especially younger ones, are reconsidering their career paths to protect their mental health.

For employers, these trends offer a clear message: work-life balance is no longer a perk, it’s a priority that directly impacts employee retention and engagement.

The reality is that dual employment is no longer a fringe phenomenon; it’s now deeply embedded in the fabric of American work life. Whether driven by economic necessity or personal ambition, more employees than ever are balancing two jobs. As this trend grows, employers can no longer afford to ignore the impacts of moonlighting on well-being, productivity, and engagement.

Forward-thinking organizations are moving away from outdated policies that discourage or outright ban outside employment. Instead, they are recognizing the value that second jobs can bring—whether through developing new skills, expanding professional networks, or enhancing employees’ financial stability.

Rather than punishing or stigmatizing dual jobholders, many companies are choosing to actively support their needs and help them thrive.

Some key strategies for employers include:

• Offering flexible work schedules and remote options that allow employees to manage multiple responsibilities without sacrificing performance.
• Providing access to mental health resources, such as Employee Assistance Programs (EAPs), free counseling sessions, or on-demand wellness apps to help employees manage the stress and burnout risks associated with working two jobs.
• Encouraging boundaries around after-hours communication and respecting time off, so that workers aren’t pressured to be “always on” while managing another job.
• Supporting career development paths that align with employees’ evolving interests and skills through internal mobility, mentorship programs, or skills-based training to help employees grow both inside and outside the organization.
• Building a culture of transparency where employees feel safe disclosing side gigs or second jobs without fear of judgment or career repercussions, particularly when there’s no conflict of interest involved.

Employers who embrace this more open and supportive approach can turn a potential source of friction into an opportunity to foster greater engagement and loyalty. Supporting employees with second jobs not only helps them stay financially secure, but also signals trust, respect, and adaptability.

While holding two jobs can provide financial security and new opportunities, it also presents significant challenges, including increased burnout and work-life imbalance, especially for younger workers and women balancing additional caregiving responsibilities.

For employers, these trends highlight the urgent need to rethink traditional workplace policies and support systems.

Here are the key takeaways:

• 8.5 million Americans held multiple jobs as of May 2025, with a steady increase over recent years.
• Women and young adults (ages 20–24) are more likely to hold multiple jobs than other groups.
• Economic insecurity and rising living costs remain the top drivers behind second jobs, especially for Gen Z workers who live paycheck to paycheck.
• Besides financial reasons, many pursue second jobs to explore interests, develop skills, or launch entrepreneurial ventures.
• Research shows that moonlighting does not necessarily hurt job performance, but can increase burnout and work-family conflict.
• Burnout is peaking earlier in life, with Gen Z and Millennials experiencing it around age 25, which is much younger than for previous generations.
• Work-life balance challenges are especially acute for women who face a “double burden” of paid and unpaid work.
• Forward-thinking employers are adapting by offering flexible schedules, mental health support, clearer boundaries, and career development aligned with employees’ evolving goals.
• Creating a culture of transparency and support around holding multiple jobs can foster greater employee engagement and reduce turnover.

If you’re interested in learning more about our leadership coaching and development services to elevate your teams and rethink your workplace policies, click below to connect with our experts and see if Careerminds is the right fit for your organization.