Nearly one in three Americans have turned to supplemental income streams as grocery and gas prices continue climbing, with many citing concerns about job security in an economy showing weakness outside select sectors. A USA Today report found 28% of Americans have taken on a side hustle, with nearly half of them, 49%, starting one in the past year and about 54% saying they did so to earn extra money for bills or essentials.
Grocery prices are expected to rise further because of costs associated with the Iran war, while higher gas prices are adding to concerns about consumer spending. The mounting cost pressures are forcing households to seek alternative income sources rather than rely solely on traditional employment.
Market Response to Economic Uncertainty
A separate ZipRecruiter survey estimated that 35% of Americans have an alternate income stream. ZipRecruiter Economist Nicole Bachaud said people are relying on side hustles not only to cover essentials, but also to build a financial cushion because they fear layoffs in a job market that is weak outside of a few resilient sectors. She said, "The market sitting the way it did for the last year, I think a lot of people were saying, 'If I were to lose my job right now, it would be really hard to find something else,'" and added, "Adding something on the side is just really to prepare themselves for the 'what if' environment."
The phenomenon spans demographics and income levels. Last year, a Bankrate survey found 34% of Gen Z, 31% of millennials, 23% of Gen X and 22% of baby boomers have sought one out. The ZipRecruiter survey found that about 45% of those earning more than $150,000 do supplemental work, compared with about 31% of workers earning less than $25,000 and about 31% of those earning between $25,000 and $50,000.
E-Commerce Leads Entrepreneurial Activity
E-commerce has emerged as the most popular way to make extra cash, with people selling handmade goods, secondhand items and various digital products on sites like eBay, Etsy and Facebook Marketplace. The Omnisend report found that of those with side hustles, about 46% sell or resell products online, 31% do freelance work and 21% do social media content creation or run a blog.
Kory Kantenga, head of economics for the Americas at LinkedIn, said, "It's the old adage: The more money you have, the easier it is to make money," and added, "For example, you today are an AI engineer and you're working for a company. There's a lot of AI consulting work there available to you. It's just sitting there waiting for the taking."
Greg Zakowicz, an ecommerce advisor to Omnisend, said, "People are going out less, especially if they have less money. They're wearing their clothes less, wearing their shoes less – it's easier to resell this stuff," and added that the popularity of resale markets leads him to believe Americans are asking, "How do I get the money for the least amount of effort?" Of respondents to the Omnisend survey, about 39% of e-commerce side hustlers said they make more than $1,000 each month, compared with about 28% of freelancers, 26% of food delivery workers and 19% of content creators.
Profitability Analysis
Using income data from Upwork, a BestBrokers analysis ranked popular side hustles based on profitability and career potential. It found that life coaches make the most per hour, $150 on average, but noted that demand depends heavily on personal brand and reputation. Content creators for brands are next, making an average of $40 per hour, though income is inconsistent early on. Affiliate marketers make an average of $37.50 per hour. E-commerce freelancers, photographers, T-shirt designers, influencer marketing freelancers, copywriters and tutors all make upward of $30 per hour on average, the analysis said. Photo editors, proofreaders, Canva designers, blog writers and digital artists earn upward of $20 per hour on average.
Zakowicz said those looking to start a side hustle should remember three things: time is money, understanding your finances is key and being realistic doesn't hurt. He said, "The thing people don't realize is you've got to look at that next step ahead," and added, "That next step might be a cliff, and you got to be willing to pack a parachute."
Why This Matters:
The surge in side hustles reflects Americans' pragmatic response to economic pressures through individual initiative and entrepreneurship rather than dependence on government assistance. With war-related supply chain disruptions driving up essential costs and labor market weakness outside select sectors, households are demonstrating resilience by creating their own income opportunities. The fact that nearly half of higher earners maintain supplemental income streams suggests this trend reflects strategic financial planning rather than desperation alone. The growth of e-commerce platforms has lowered barriers to entry for small-scale entrepreneurship, enabling market-based solutions to household budget challenges. However, the reliance on side income to cover basic expenses also signals underlying economic fragility that warrants attention to fiscal policies affecting inflation and job creation.