Stagnating wages, the "Uber-isation" of the workforce, and the growth of insecure casual or contract work has led to many more Australians taking on multiple jobs, according to a report by the ACTU.

The number of secondary jobs rose to a record high of more than one million at the end of 2018, ABS data released last week shows.

The number has increased more than 20 per cent in the past two years, with the growth coming mostly from roles such as office temping, answering phones at call centres, tutoring, caring and other healthcare and social assistance jobs.

The graph below shoes the number of secondary jobs in healthcare and social assistance, and education and training between 2010-2018 - it shows the figures for each sector have been trending gradually upwards since 2010, and then shot up in early 2017:

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Whatsapp Number of secondary jobs in healthcare and social assistance, and education and training 2010-2018.

The ACTU, which is the peak body for Australian trade unions, is running a campaign to give people the choice of converting from casual to permanent, and ending labour hire and 'sham contracting'.

ACTU Secretary Sally McManus calls the growth in secondary jobs the "Uber-isation" of the workforce:

"We're fast heading down the American path where workers get the tips and scraps off the table, not a fair share of the revenue generated by their work," she said in a statement.

What's driving the change

The ACTU says people are not earning enough in their primary job, and so are forced to pick up more work. This is partly due to the increase in casual, part-time and otherwise insecure work - for many, primary jobs are no longer as good as they were.

While unemployment is low, the rate of underemployment - where a worker is not working the full-time hours they would like - is near a record high. It currently stands at 8.1 per cent, which represents more than one million Australians.

This is a problem that disproportionately affects young people. According to last year's Household, Income and Labour Dynamics in Australia (Hilda) survey, young workers are much more likely to be underemployed - 31 per cent of workers aged 15-19 and 20 per cent aged 20-24 are underemployed, whereas no other age bracket sees more than 9 per cent of its workers in such a position.

Aside from underemployment, wages aren't so good either.

Since 2012 there has been little change in real wages (which takes into account increases in the price of goods and services, also known as inflation). Compare this with the years between 1995 and 2012, when workers saw average real wages increase by almost 2 per cent per year.

Economists call this wage stagnation.

The graph below shows the real value of wages falling from 2010 to 2018, while the number of secondary as a proportion of total jobs has gone up:

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Whatsapp Rising number of secondary jobs as a proportion of total jobs and low wage growth 2010-2018.

The wage stagnation is not due to a broader economic decline, but worsening inequality, according to an open letter this week from more than 120 economists, lawyers and labour market analysts demanding action to address stagnant wage growth. It was published in the Australian Financial Review.

The letter states that wages as a percentage of gross domestic product is at its lowest level since quarterly records began in 1959. Workers are producing more but earning the same or less.

The ACTU report states: "The net result is rising debt and desperation for ordinary people as many workers are forced to work two or more jobs to get by."

It also blames the growth in part-time work, temporary work, self-employment, or work that is otherwise insecure: "Many workers simply cannot get enough hours and this is a key source of anxiety for many workers in today's labour market."

The truth is Australia is rapidly changing and is now bearing an even greater resemblance to some of the worst aspects of American society.

"In both countries workers have been waiting close to a decade for a decent pay rise, income inequality is at record levels, working hours are long or unpredictable and penalty rates are being cut or do not exist."

Why insecure work is an inequality problem

For some, insecure work has meant flexibility. Jobs like driving for Uber have been a handy way of earning a little more around other commitments, such as work or family.

But stories like this may be the exception. According to the OECD, an organisation which promotes market capitalism, having more insecure work may worsen inequality across society.

In 2015, the OECD concluded that about 40 per cent of all employment in Australia is 'non-standard' - meaning work that does not conform to the norm of full-time, regular employment with a single employer over a long time span. Non-standard work can include work that is temporary, part-time, on-call, or arranged through an agency or subcontractor.

Australia's rate of non-standard work was the third-highest rate among the 36 OECD countries, behind the Netherlands and Switzerland.

Explaining how increased non-standard work can lead to more inequality, the report stated: "People are more likely to be poor or in the struggling bottom 40 per cent of society if they have non-standard work, especially if they live in a household with other nonstandard or non-employed workers."

"This might not matter too much if such work were a stepping stone to a better job in the future, but too often this is not the case.

Excessive wage penalties associated with temporary jobs in particular can contribute to wider inequality. That can also contribute to lower levels of training and skill development - precisely those activities that can lead to higher growth in the future.

The 2018 triple j What's Up In Your World survey found a third of young people - including a quarter of full-time workers who completed our survey - have a side-hustle to bring in more money.

The ACTU report says that one of the major problems with the growth in non-standard work in Australia is the shift in 'economic risk' from the employer to the worker. The true cost of insecure work will be known when growth stalls and workers are sacked.

"If Australia is hit by a global financial crisis or domestic demand diminishes, it is labour, not capital, that absorbs most of the pain," the report says.

"Because of the very high proportion of insecure jobs, Australian employers can rapidly and substantially reduce their labour input and labour costs in a downturn."

"Public policy in Australia over the last 30 years has gone too far in promoting downward wage flexibility and flexible forms of work."

"This is why we have a great divide."