America’s Second Shift: Why Side Hustles Are Now a Financial Lifeline

The 9-to-5 workday is going the way of the door-to-door salesman. So is the definition of “work.”

For a growing number of Americans, a traditional job is no longer their sole, or even primary, source of income. What were once considered sporadic “gigs” or supplemental ways to earn pocket money have rapidly evolved into a critical component of household financial stability.

According to a forthcoming report from PYMNTS Intelligence, “Do the (Side) Hustle: Four in 10 U.S. Consumers Hold Side Jobs,” more than 2 in 5 consumers now earn income outside traditional employment, effectively making side hustles a financial mainstay rather than a niche activity. This proportion rises significantly among people already struggling paycheck to paycheck.

The scale of this recent shift is striking. The extra dollars aren’t just for minor discretionary spending; on average, they constitute a substantial 43% of a hustler’s total income. For some people, the financial lifeline is even more pronounced, accounting for a 76% of total income for those earning under $50,000 a year and 57% for Generation Z consumers (roughly 28 or younger). For many Americans, side work is not just nice-to-have extra money, but foundational to their financial lives.

In the last months of 2024, the share of U.S. workers performing more than one traditional job spiked to nearly 5.3% of the entire workforce, Labor Department data shows. That was the highest level in five years and a degree not since the 2008-09 Great Recession.

The data point doesn’t include side hustles that generate income through reselling designer clothes on The RealReal, mining credit cards for rewards, participating in paid research or similar income-producing activities, all considered in the PYMNTS Intelligence report.

Economic Fears

Not surprisingly, economic conditions are a primary catalyst for the surge in side work. Nearly 6 in 10 side hustlers report starting or increasing their efforts due to the state of the economy and the impact of a global trade war. Fears about inflation, potentially exacerbated by tariffs, are explicitly cited as a factor.

Nearly one-quarter of all U.S. consumers report having started or increased their side work in response to an uneasy feeling about the economy. This reaction is particularly pronounced among those living paycheck to paycheck with difficulty; nearly three-quarters of struggling paycheck-to-paycheck side hustlers have taken on more work because of the current economic climate, either by starting new side jobs (38%) or increasing their hours on existing ones (36%).

Either way, Americans won’t stop hustling. Forty-five percent of side hustlers anticipate dedicating even more time to their efforts in coming months.

The study, based on a survey of 2,247 consumers conducted in April, highlights that the vast majority of side hustlers pursue their added income with specific financial objectives in mind. While the goals vary, necessity emerges as a dominant theme.

Covering basic living expenses is the most frequently cited reason, listed by 22% of all side hustlers and rising to 34% among consumers struggling with monthly bills. Beyond immediate survival, other key drivers include building savings or emergency funds and paying down debt. Meanwhile, goals like developing a new skill or exploring a hobby as a potential business appear more common among those not living paycheck to paycheck.

Where does the additional income go? Seven in 10 side workers keep their extra dollars separate from their regular earnings. Many earmark the money for specific need or store it in dedicated accounts.

While investments (14%) and debt payments (12%) are also purposes, struggling consumers are most likely to channel this supplemental income towards paying down debt. This suggests that for a significant segment of the population, side hustles aren’t just providing a cushion — they’re being used to manage financial instability and address liabilities in the face of economic uncertainty.

Read more:

New Data Shows Inflation Worries Grip US Consumers in Echo of the Pandemic

Fed: Consumer Expectations ‘Deteriorate Sharply’ in Wake of Tariffs

Unmasking the Driver of Paycheck-to-Paycheck Living