Are Side Hustles the New Normal? 54% of Americans Say They’ve Taken on Side Gigs

Written by: Raina He

Written by: Raina He Author

Raina He is a personal finance writer and whose work has appeared in CNET Money, Newsweek Vault, NextAdvisor with TIME, MarketWatch and more. She writes about personal finance because she firmly believes that financial literacy can help people create more opportunities in their life — whether through saving money for specific goals, using credit card rewards to stretch their dollars further, or being prepared for unexpected financial turbulence.

Edited by: Andrew Dunn

Edited by: Andrew Dunn Senior Editor

Andrew Dunn is a veteran journalist with more than a decade of experience in the business and finance arena. Before joining our team, Andrew was a reporter and editor at North Carolina news organizations including The Charlotte Observer and the StarNews in Wilmington. In those roles, his work was cited numerous times by the North Carolina Press Association and the Society of Business Editors and Writers. Andrew completed the business journalism certificate program from the University of North Carolina at Chapel Hill.

Financially squeezed by inflation and insufficient wages, many Americans are turning to side hustles as a way to make ends meet

Updated: May 23, 2024

Sometimes we do side hustles just for fun — a way to turn a passion into a business, or pad your checking account with some extra spending money. But for many people, part-time gigs are a necessity.

With inflation still eating into household budgets, many American households are trying to catch up financially. More than half of Americans have taken on a side hustle to supplement their primary income in the past 12 months, according to a new MarketWatch Guides study.

To dive deeper into why side hustles are becoming increasingly common, especially among people who are struggling financially, the MarketWatch Guides team surveyed 2,000 Americans to get a better understanding of their financial situations. Check out our findings — and advice — below.

Key Findings

More than half (54%) of Americans say they’ve adopted a side hustle to supplement their primary source of income in the last 12 months.
Gen Zers are most likely to take on a side gig (71%), but millennials are close behind (68%).
Nearly one-third of baby boomers say they’ve taken on a side hustle.
Two-thirds of Americans (66%) say they are living paycheck to paycheck, and more than half of those Americans (57%) say they’ve taken on extra opportunities to supplement their primary source of income.

Until Recently, Inflation Outpaced Wage Growth

Starting in late 2020, average year-over-year wage growth and inflation (as measured by the Consumer Price Index, which tracks the prices of common items like food, energy and clothes) both grew at a record pace, peaking in the summer of 2022, according to U.S. Bureau of Labor Statistics data.

But between June 2021 and March 2023, year-over-year inflation was higher than average year-over-year wage growth. This essentially meant that despite earning more money, workers couldn’t buy as much because the prices of goods were rising faster than their wages.

The inflation/wage growth gap peaked in June 2022, when inflation was at 9.1% and year-over-year wage growth was 5.3%.

Although the inflation rate has been mostly declining since June 2022 and hasn’t outpaced wage growth for several months now, the Consumer Price Index in February 2024 was still up 3.2% from February 2023. That’s higher than the Federal Reserve’s 2% target rate.

Although wages have increased from pre-pandemic levels, many Americans are still feeling financially squeezed. Two-thirds of Americans say they’re living paycheck to paycheck, an earlier MarketWatch Guides study found. Perhaps that’s why they’re turning to side hustles to make ends meet.

More Than Half of Americans Adopt Side Hustles

Our survey found that 54% of working Americans report taking on at least one opportunity for extra income in the past 12 months. Men were more likely than women to have taken on a side hustle, with 59% of men and 49% of women having done so.

Among people who say they live paycheck to paycheck, 57% said they’ve taken on additional income opportunities to supplement their primary income. And 48% of people who aren’t living paycheck to paycheck have done the same, our study found.

Nearly One-Third of Baby Boomers Work Side Hustles for Extra Income

Some generations are more likely than others to take on side hustles. Gen Z is the most likely to have taken on a side hustle, with 71% saying they’ve done so. Millennials are close behind, at 68%. Baby boomers are the least likely to have taken on a side hustle, but nearly a third (32%) still say they have.

We divided the generations as follows, per guidelines published by the Library of Congress:

Baby boomers: Born between 1946 and 1964, now between the ages of 60 and 78
Gen X: Born between 1965 and 1980, now between the ages of 44 and 59.
Millennials: Born between 1981 and 1996, now between the ages of 28 and 43.
Gen Z: Born between 1997 and 2012, now between the ages of 12 and 27.

Most baby boomers are currently at or approaching traditional retirement age, and may be supplementing their income with side hustles because their retirement savings aren’t enough to sustain their living expenses. Retirees living on a fixed income have likely been affected by the record-high inflation in the past few years while not benefiting from the higher average wage growth due to being out of the workforce.

Many Side Hustlers Feel Financially Insecure

For many people, a side hustle may feel like a necessity rather than a choice — but the extra income still may not be enough to push them into the realm of financial security.

According to our study, 44% of Americans who said they’ve taken on the opportunity for extra income said they still feel financially insecure. People with a side hustle were also more likely to report they were living paycheck-to-paycheck compared to those without a side hustle. When asked about the biggest obstacle to achieving their financial goals, the most common response among side hustlers was the high cost of living (30%), followed by not enough income (22%). Those were also the two most common responses among non-side hustlers.

Ways to Improve Your Finances Without a Side Hustle

Earning extra money with a side hustle can be a fine choice if your primary income isn’t enough to meet all your financial needs, but it’s not your only option. Here are some other things you can try:

Increase your primary income: If your salary has been stagnant for the past few years, it may be time to re-negotiate your salary and ask for a raise. For the best chance of success, practice what you’ll say beforehand, follow a script that focuses on your achievements and value to the company and research what your colleagues or workers at other companies are making. Alternatively, you can look for a new full-time job. In February 2024, the average job switcher increased his or her pay by 7.6% year over year, according to labor market research institute ADP.
Prepare an emergency fund: Ideally, you should save up three to six months of living expenses in a high-yield savings account, with the money only spent in case of a financial shock such as a job loss or an unexpected expense. If saving that much seems daunting, start with small, consistent steps — even saving $50 each week will give you a $500 emergency fund after 10 weeks.
Seek outside help if you need it: If you’re struggling to meet your basic needs, there are national and local resources to help. You can find a food pantry near you, apply for SNAP benefits if you meet your state’s eligibility requirements or search for other community programs near you that offer free or low-cost help.

Methodology

The MarketWatch Guides team surveyed 2,000 Americans using Pollfish, a third-party market research and survey platform, to better understand financial sentiments among Americans. We collected survey data for this report from February 13, 2024 through February 15, 2024.

We weighted responses to align with population demographics across age, gender, and income status to be representative of all U.S. adults (aged 18+). The margin of error is +/- 3% with 95% confidence. We identified those with a “side hustle” as respondents who answered “Yes” to the question “In the past 12 months have you taken on an opportunity for extra income in addition to your primary source?”

Additional data on changes in wages for civilian workers and the Consumer Price Index comes from the U.S. Bureau of Labor Statistics. All values represent 12-month percent changes.

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