Rise of Side Hustles Signal Economic Hardship

The Rise of Side Hustles

The term refers to work in addition to a primary job as an income supplement. A simple search for side hustles on the internet generates article after article with lists of potential ways to make money in your spare time. YouTubers, TikTokers, bloggers, and all manner of websites try to attract viewers and readers with catchy headlines like ‘10 Side Hustles That Can Actually Make You Money,’ or ‘Building a $15K/Month Print on Demand Business on Etsy’ in the ever growing scramble to attract attention to online content. Common side hustles include taking online surveys, selling items online, freelance work like writing and editing text, and miscellaneous jobs like delivering groceries or driving for rideshare services like Uber and Lyft. 

Evidently, this type of content is popular because a sizable number of Americans have taken up such side hustles in their lives. In a survey conducted by the small-business insurance marketplace Insuranks, a staggering 93% of over 1,000 surveyed working Americans have a side hustle. Those surveyed had either part-time or full-time employment and the majority had either one or two side hustles. A small percentage had upwards of four or five side hustles. 

A Necessary Move for Some?

The troubling part of the survey concerns the top reasons Americans work side hustles. 44% answered that they do it to make ends meet or cover bills and 28% said that it was due to inflation driving costs up. In addition to that, 51% said that they are considering taking up an additional side hustle because of inflation. 

Compare these 2022 numbers with a study by the personal finance group Bankrate in 2019 which surveyed 2,550 adults with side hustles. According to that study, three in ten working Americans with a side hustle say that they need the extra income to cover the cost of regular living expenses. 

This trend toward side hustles as a necessity should be viewed in the context of larger economic waves rippling through the United States and in global markets. By boosting income streams with a side hustle, Americans are navigating the ups and downs of the great resignation, rising inflation, supply chain issues, geopolitical pressures, and automation. In the latest data, it is suggested that about 60% of American consumers are living paycheck to paycheck with many individuals and families either just breaking even or struggling to pay their bills on time. 

Within these larger economic contexts, the increased need for Americans to pursue side hustles reflects harder times where individuals and families depend on side hustles to keep themselves financially afloat.