Side hustles decline as wage growth outpaces inflation, survey finds

The number of Americans working side hustles has dropped to its lowest level in seven years, according to new research from Bankrate. The survey found that just 27% of U.S. adults currently have a side hustle, down 9 percentage points from 2024 and 12 points from 2023.

Ted Rossman, a senior industry analyst at Bankrate, told News On 6 that one of the biggest reasons for the decline is that wage growth has finally started to outpace inflation.

“Whereas a few years ago a lot more people were side hustling out of necessity to put food on the table and a roof over their head, now a lot more people are finding that their primary job is paying the bills,” Rossman said.

Shift From Survival to Discretionary Spending

While side hustle participation is down, those who continue to take on extra work are doing it more for lifestyle reasons than basic needs.

“The primary use of the money is discretionary spending,” Rossman said. “Vacation funds, entertainment—it’s not so much food, gas or rent like it used to be.”

Rossman added that while essentials remain a factor, paying off debt and investing have become less common motivators for side income.

Most Side Hustlers Make Less Than You Think

Despite flashy success stories on social media, the reality is more modest. The median monthly income from a side hustle is $200, though the average is closer to $1,000 due to a few high earners skewing the data.

“It’s a small supplement, not enough to live on,” Rossman said. “But $200 a month adds up to $2,400 a year—definitely not nothing.”

Popular side hustles range from pet sitting and photography to freelance writing and online sales. For many, it's also a way to stay connected to a personal passion.

The Future of Side Hustles

Though the trend has slowed, Rossman doesn’t believe side hustling is going away.

“I expect side hustling to bounce back,” he said. “If the job market were to take a turn for the worst, I would expect side hustling to go up. Some of this may be out of necessity.”

Young adults, in particular, are likely to keep the trend going. Rossman pointed to shifting career values, with many workers favoring flexibility, entrepreneurship and job mobility over traditional long-term employment.

“It’s not 50 years, a gold watch and a pension anymore,” he said. “People want to be their own boss.”