The act of waking up early to work, often referred to as the “hustle,” has received criticism during the pandemic. However, due to the rising cost of living and stagnant wages, many workers are taking on side hustles at an alarming rate. Recent surveys have shown that up to 40% of American adults have a side gig, and the number of side hustles has increased by 13% in the past two years. It is mostly younger workers, specifically Gen Zers and millennials, who are taking on these additional jobs.
This trend reflects the current state of the economy and the struggle for financial independence. Most respondents said they needed their side hustle income to cover regular living expenses, while others use the money for discretionary spending, savings, or debt repayment.
According to Ted Rossman, a senior industry analyst at Bankrate, side hustles are becoming more prevalent, but people aren't necessarily getting ahead despite working harder. The extra income from side gigs is often seen as essential for covering daily expenses rather than a passion project or a way to improve financial standing. For millennials and Gen Zers, the high cost of living has been a significant concern and stressor. Bankrate's survey discovered that the average side hustler earns $810 per month, with millennials earning the most at $1,022 monthly, and Gen Zers earning an average of $753.
However, around 28% of side hustlers earn between $1 to $50 per month, which is barely enough to cover minimal expenses. The majority of low-income households earning below $50,000 require side gig income to cover daily expenses, while households earning over $100,000 are more likely to engage in side hustles for discretionary spending. The need for side hustles will likely continue, with 28% of U.S. workers with side gigs stating that they'll need them to meet their financial needs.