The gig economy remains large in the United States and continues to grow.
More than one-third (36%) of American adults earn money from a second job in addition to their main source of income, the survey found. New Bankrate SurveyPart-time workers’ income is up from last year, with the average part-time worker’s monthly income increasing from $810 last year to $891.
While the number of respondents who said they have a side hustle is down slightly from 39% last year, it’s still up significantly from 2019, when Bankrate began tracking respondents’ side hustles, Ted Rothman, senior industry analyst at Bankrate, told USA Today. By comparison, 19% of respondents in 2019 said they had a side hustle.
“Inflation and high interest rates are driving more people to take on second jobs,” Rothman said. “Technology has made it easier to do that too, with more people working from home, online, or through various mobile apps.”
While the latest figures aren’t widely available, MarketData estimated the gig and side hustle market at $2.58 trillion in 2018. That year, analysts estimated that 36% of the U.S. workforce of 160 million people was already working non-gig jobs. That figure is projected to grow by more than 50% by 2027, to 83 million Americans working side hustles.
And then Corona happened.
Bryce Colburn, managing editor of small business at USA Today/Blueprint, USA Today’s personal finance content partner, said there’s been a surge in the number of people starting side hustles during the pandemic.
Colburn, the journalist who has written extensively about side hustles, said that while the side hustle industry can’t be said to have grown directly because of COVID-19, it’s clear that the number of people taking up side jobs has skyrocketed during and after the pandemic.
“Remote work has definitely been a big factor in the growth of side hustles,” Colburn said. “We now have the technology to do that, which means you can stay at home and still do other work.”
Who has a side job?
While people of all ages are starting side hustles, millennials and Gen Z seem to be taking on side hustles at a higher rate, Colburn said.
Colburn’s observations are consistent with Bankrate’s findings: Gen Z (ages 18-27) are the most likely to have a side hustle (48%) compared to millennials (ages 28-43).) 44%. Thirty-three percent of Gen Xers (ages 44-59) and 23% of Baby Boomers (ages 60-78) said they have a side job.
The survey found that parents with children under 18 are more likely to have a side job (45%) than childless adults (36%) and parents with adult children (28%).
Corban said some workers may be working second jobs between their full-time remote jobs.
Here are some more highlights from Bankrate’s survey.
- Since 2022, more people have started working part-time jobs. More than half of those with a side hustle, 52%, started their side hustle less than two years ago.
- People who have side hustles spend their money differently. 37% are using some of their gig income for discretionary spending, 36% are using the extra cash for everyday expenses, 31% are putting some money into savings, and 20% are using their income to pay off debt.
- A side hustle isn’t temporary. 32% of respondents believe they will always need a second job to help support their household.
How much do you earn from your side hustle?
In Bankrate’s survey, nearly two-thirds, or 63%, of people with side hustles said they make more than $100 a month from them, and more than one in four respondents, or 28%, make more than $500 a month.
Younger generations and men are more likely to have side hustles and earn more: Millennial side hustlers make an average of $1,129 a month, Gen Zers make $958, Gen Xers make $751, and Baby Boomers make $561.
The gender pay gap also exists in the gig economy: While a slightly higher percentage of men (38%) than women (33%) have a second job, men earn an average of $1,034 a month compared to $735 for women.
Why do people have side hustles?
Rothman said high inflation and rising housing costs, along with regular monthly bills and a desire to travel and save money, are driving more people to turn to second jobs. “Americans still feel like one job is never enough, and the cost of living has risen sharply in recent years,” he said.
But Rothman also said he wasn’t too convinced by the survey statistic that showed 32% of people who have a side hustle feel they’ve always needed it to make ends meet.
“Most of these people are just starting out, but they think they need to keep doing it,” he says, because more than half have been doing it for two years or less. “Maybe things aren’t as bad as people fear.”
Still, “it’s really about expenses,” he said. “Last year, it was all day-to-day expenses, and this year it’s more fun expenses, like, ‘Let’s get a side hustle and take a nice vacation and splurge on electronics.'”
Colburn said reporters were surprised that while many side hustlers said they were doing it because they needed the money, “50 percent said they were doing it for fun, not for the money.”
Side job:Why do women look for freelance or one-off work? To avoid the “old network” of colleagues at work.
What’s your best side gig or most popular gig?
Popular side hustles include those involving e-commerce sites like eBay and Etsy, or using social media to drive people to e-commerce platforms, Colburn said.
Meanwhile, the easiest side hustles to take on are house sitting, dog walking, freelance work, and grocery delivery, according to Blueprint. Blueprint also suggests some side hustles to avoid, such as taking online surveys, driving for rideshares, and being a mystery shopper, as the compensation may not be commensurate with the time invested.
Colburn also said it’s important for people with side hustles to understand how their jobs will affect their taxes.
He said many people don’t realize they have to pay tax on any amount over $400 they make from a side hustle, and that their tax rate could increase if their side hustle is successful.
Rothman said he thinks the number of people taking on second jobs will continue to grow, especially as the workforce continues to change and people choose to change jobs or are unable to hold down stable employment.
Others may turn their side hustle into a passion project or their next full-time job, he said.
Rothman’s final advice is that if you’re planning on taking on a side hustle, walk before you run.
“I think side hustles are a great way to make some extra money or pay off credit card debt,” he says, “but be careful of ones that require a lot of up-front investment. Sometimes they could be total scams… or they could be pyramid schemes that require you to stock up on a lot of inventory.”
“Explore it first, test drive it, validate the concept before diving in headfirst.”
Betty Lynn Fisher is a consumer reporter for USA Today. She can be reached at email address: Or follow her on X, Facebook, or Instagram @blinfisher.. Sign up for our free The Daily Money newsletter with consumer news updates on Fridays.here.
