Nearly one in three American households are now compelled to rely on supplemental income streams, commonly known as side hustles, to meet basic financial obligations. This widespread shift reflects a deepening economic strain on the native population, as essential costs continue to escalate across the nation.
Grocery prices are projected to increase further, a direct consequence of costs associated with the Iran war. Concurrently, higher gas prices are intensifying concerns regarding consumer spending power, placing additional burdens on household budgets.
A USA Today report indicates that 28% of Americans have taken on a side hustle. Of these, nearly half, 49%, initiated such work within the past year. A significant majority, approximately 54%, cited the necessity of earning extra money for bills or essential expenses as their primary motivation.
Separately, a ZipRecruiter survey estimates that 35% of Americans maintain an alternate income stream. ZipRecruiter Economist Nicole Bachaud stated that individuals are increasingly dependent on side hustles not only to cover essentials but also to establish a financial cushion. This behavior is driven by fears of layoffs within a job market described as weak outside of a few resilient sectors. Bachaud observed, “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,'” adding that supplemental work serves “just really to prepare themselves for the ‘what if’ environment.”
The Erosion of Stable Work
The reliance on side hustles spans across various generations and income brackets, indicating a systemic shift in the nature of work. A Bankrate survey conducted one year ago found that 34% of Gen Z, 31% of millennials, 23% of Gen X, and 22% of baby boomers had sought out such additional work.
The ZipRecruiter survey further revealed that approximately 45% of those earning more than $150,000 engage in supplemental work. This figure contrasts with about 31% of workers earning less than $25,000 and roughly 31% of those earning between $25,000 and $50,000, suggesting that economic precarity is not confined to lower-income segments.
Kory Kantenga, head of economics for the Americas at LinkedIn, articulated a principle often observed in such economic environments: “It’s the old adage: The more money you have, the easier it is to make money.” He provided an example, stating, “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.” This highlights how those with existing capital or specialized skills may more easily leverage the gig economy, while others struggle for basic subsistence.
A Precarious Future
E-commerce has emerged as the most prevalent method for generating additional income, with individuals selling handmade goods, secondhand items, and various digital products on platforms such as eBay, Etsy, and Facebook Marketplace. An Omnisend report found that among those with side hustles, approximately 46% sell or resell products online, 31% engage in freelance work, and 21% focus on social media content creation or manage a blog.
Greg Zakowicz, an e-commerce advisor to Omnisend, noted a change in consumer behavior driven by economic pressures. He stated, “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.” Zakowicz suggested that the growing popularity of resale markets indicates Americans are increasingly asking, “How do I get the money for the least amount of effort?”
Regarding profitability, an Omnisend survey indicated that about 39% of e-commerce side hustlers report earning more than $1,000 each month. This compares to approximately 28% of freelancers, 26% of food delivery workers, and 19% of content creators.
An analysis by BestBrokers, utilizing income data from Upwork, ranked popular side hustles by profitability and career potential. Life coaches were found to earn the most per hour, averaging $150, though demand is heavily dependent on personal brand. Content creators for brands followed, averaging $40 per hour, with income inconsistency early on. Affiliate marketers averaged $37.50 per hour. E-commerce freelancers, photographers, T-shirt designers, influencer marketing freelancers, copywriters, and tutors all reported earning upward of $30 per hour on average. Photo editors, proofreaders, Canva designers, blog writers, and digital artists earned upward of $20 per hour on average.
Zakowicz advised those considering a side hustle to prioritize time management, financial understanding, and realism. He warned, “The thing people don’t realize is you’ve got to look at that next step ahead,” concluding with a stark assessment: “That next step might be a cliff, and you got to be willing to pack a parachute.”