:max_bytes(150000):strip_icc()/GettyImages-1470035621-f28a691714a241c3b68a37813dab1ca5.jpg "Why So Many Americans Are Looking For a Side Gig Right Now")
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KEY TAKEAWAYS
- Inflation is pressuring American household budgets, so many people are looking to add a second job.
- Wages have not kept up with inflation, making it even harder to make ends meet.
- Many workers are looking for flexible side gigs, like driving for Uber or DoorDash.
Household budgets are strained, and many Americans are considering second jobs to keep up.
Prices have been rising for years, pushed higher by inflation. More recently, tariffs are lifting prices even further. To cope, almost two-thirds of currently employed Americans are looking to get a second job in the next year, according to a survey of 2,000 adults conducted by the American Staffing Association.
Parents in particular are more likely to branch out and seek a second job, the survey found. Three-quarters of parents with minor children say they are likely to get a side gig in the next year, compared to 55% of adults without.
“A side hustle can be a good way to build savings, pay off debt, find a new job, or change careers,” said Richard Wahlquist, chief executive officer at the American Staffing Association, in a press release. “For others, a side hustle means having enough money to make ends meet.”
Why This Matters to You
Some experts suggest that Americans struggling with price increases consider side jobs, though that may not be an options for everyone. The emergence of more flexible jobs with companies like DoorDash, Uber, and Etsy has offered people more options for making money on the side. It’s getting harder to boost income via “job hopping,” perhaps making second jobs more appealing.
More Millennials and Generation Z workers said they expected to get an additional job when compared to older generations. Recent spending data from Bank of America reflects that younger generations are falling further behind, even as they slow their spending. Most now find themselves unable to increase their wages by “job hopping.”
Inflation has been running hot since the COVID-19 pandemic, and wages for every generation have not kept up with price increases. In 2024, the American median household income was $83,730, up about 1.3% compared to the year before, according to the most recent report from the Census Bureau. During that same time, inflation was up by 2.9% over the previous 12 months, as measured by the Consumer Price Index.
With workers having to spend more of their income on essentials, it is harder to save. A little less than one in five Americans told the American Staffing Association that if they were laid off, their savings would last them less than a month. About a third said that if they did not have a job, their savings would support them for one to five months.
Things could get worse for workers this year if companies slow their hiring amid reluctance to invest capital before they understand the full impact of tariffs or other economic factors. A recent report from Bank of America found that lower-income workers received lower wages and were offered fewer hours.
Additionally, student loan payments have restarted after a long pause, so many borrowers have had to cut their spending elsewhere to stay current.
Important
Have you taken on a side gig or are you looking for one? Investopedia wants to know why and how it is helping your budget. To answer these questions, fill out this form:
