Side Hustle Nation: More Americans Seek Extra Income Amid Economic Uncertainty

When the economy starts to get wobbly, the warning signs typically emerge in closely-watched measures: government indicators of declining economic growth, rising prices and depressed consumer sentiment indexes, falling earnings for retailers as pinched consumers stay away.

One canary in the coal mine that’s less noticed: the scramble to find supplemental income.

Two in five American consumers are now “side hustlers,” actively earning money outside their primary job, whether through contract work, re-selling clothes and furniture, milking their credit cards for rewards, rideshare driving, selling handmade goods or renting out their properties, according to a forthcoming report from PYMNTS Intelligence. One in three just started their hustle due to current financial pressures. The rest are ramping up what they were already doing, and for the same reason.

The whistle from the dark shaft: Amid the unfolding impact of the Trump administration’s burgeoning trade war with China and broad tariffs on most countries, a major chunk of America’s more than 260 million consumers is proactively looking for ways to cover their daily expenses or increase their savings. When the economy gets shaky, Americans proactively seek out more ways to boost their bank accounts.

The rise of people scrambling to earn more by engaging in some form of extra work or selling has emerged in tandem with the ascendence of the gig economy. Though the two terms are often used interchangeably, side hustlers typically have a formal job, either full- or part-time, and supplement that regular pay through additional income-earning opportunities. Meanwhile, gig workers don’t have a permanent formal job and earn the bulk of their money through short-term, one-off opportunities for which they set their own schedules. Uber drivers are one example, though rideshare drivers behind the wheel after finishing a full day at their primary job would be considered side hustlers.

Higher-Earner Hustler

Side Hustle Nation’s main inhabitants are people whose monthly paychecks come in the door and immediately go out as soon as they pay the bills. Almost seven in 10, or 68%, of all U.S. consumers already lived paycheck to paycheck as of last month. The current economic clouds have prompted three in four of those struggling consumers to either begin taking on side work or increase their frequency of already doing so.

But higher earners are Side Hustle Nation inhabitants, too. Surprisingly, three in four hustlers hold a full- or part-time job that allows them to comfortably pay their bills. More than one in four consumers making more than $100,000 a year recently started side work due to general economic conditions. Nearly one in three were already hustlers and have started scrapping more. Some 31% of the total income earned by those higher-income people comes from side work. Whether the extra dollars are used to build up emergency funds — the number one reason — pay down debt, bankroll a vacation or bathroom remodel, invest in stocks or squirrel away for retirement, consumers are looking for extra dollars to support their lifestyle. Still, nearly 11% of those consumers are using their side income to help pay down debt.

Side hustles aren’t just waiting tables at a fancy steakhouse or editing a one-off project for a consulting firm. They also span a range of other activities. Nearly half of the people with side work that were surveyed by PYMNTS Intelligence in April participate in paid research studies or surveys, according to the forthcoming “Patchwork Paychecks: How Consumers Use Side Hustles to Stay Afloat or Get Ahead.” More than one in three leverage cashback apps, credit card rewards programs or “mystery shopping” to boost their pocketbooks. One quarter sells used clothing, furniture, or antiques on platforms like The RealReal, Poshmark, Facebook Marketplace and eBay. Some 17% do online freelance work or drive for apps including Uber, Lyft and DoorDash. Just over one in 10 sell handmade crafts, and 8% rent out their property.

The new work landscape isn’t just populated by consumers who desperately need extra dollars to make ends meet.

One in four consumers do their side hustles as independent contractors, and 9% are trying to start their own business.

Side work grosses people who don’t live paycheck to paycheck on average $2,328 a month. Hustlers living paycheck to paycheck, whether they skip some monthly bills or just squeak by, earn far less, from $1,576 to $1,836 on average. Either way, the extra work fuels on average 43% of a gig worker’s total monthly income.

Key takeaways:

Two in five American consumers now earn extra money through side hustles, making mainstream supplemental work a core personal finance strategy.

While most side hustlers are using the income to make ends meet or save, higher-income hustlers are earmarking dollars for specific purchases, savings, investing or to pay down debt.

More than half of all side hustlers recently either jumped into the game or ramped up their current supplemental activities.

Read more:

Consumers Draw New Spending Lines as Tariff Threats Loom

Unemployment Claims Rise by 18,000, Higher Than Economists’ Forecasts

Concerns About Tariffs Drive Widespread Decline in Consumer Confidence