Side Hustle Slump: Americans Ditch Extra Jobs Despite Rising Costs

OVERVIEW

In 2025, it’s become increasingly clear that fewer Americans are pursuing side hustles, according to recent findings from a Bankrate survey. Only about 27% of adults in the U.S. report having supplemental income streams from side jobs this year, a substantial drop from 36% just one year earlier. Given rising living costs—from housing and groceries to transportation and utilities—it might seem surprising that fewer people are taking on extra work. However, with regular wages struggling to keep pace with escalating financial demands, many are too exhausted or time-strapped to effectively take on additional work.

But don’t count side hustles out just yet. The individuals who continue to pursue these additional income streams are becoming savvy about selecting higher-value, lower-time-commitment opportunities. Despite this overall decline in participation, the typical side hustler is still earning roughly $885 per month, only slightly below average earnings from previous years. This shift highlights an evolving landscape where focusing smarter efforts on fewer, better-paying side hustles is proving more sustainable and rewarding.

DETAILED EXPLANATION

This downward trend marks the lowest percentage of side hustlers in the U.S. since 2017. Although at first glance this may feel like Americans have given up on pursuing extra income, it actually signals broader changes in how people approach supplemental earning. For example, a growing number of Americans are shunning low-paying, gig economy tasks in favor of more specialized and lucrative alternatives. Rather than driving hours in rideshare companies or answering endless small freelance gigs, motivated side hustlers now choose side jobs that align closely with their core skillsets, passions, or expertise—often in industries with promising growth prospects.

High inflation and surging costs for basics have taken a toll, leaving workers stressed, exhausted, and less able to devote spare hours to additional responsibilities. Plus, the traditional gig economy model, which tended to emphasize repetitive, time-intensive, and often lower-paying tasks, has lost some of its appeal. Instead, people are carefully evaluating side hustles, seeking positions where limited hours yield higher, more predictable returns. For example, skilled freelance writing or digital marketing consulting now outranks excessively demanding opportunities like manual labor or food delivery work.

This more selective strategy in the realm of side hustles has yielded financial benefits. Even though fewer people overall are participating, those who stick around generally experience relatively stable incomes. Bankrate data shows that $885 monthly earnings represent a consistent supplement capable of significantly cushioning personal budgets. For instance, the possibility of comfortably covering monthly groceries or offsetting a hefty utility bill makes side hustles increasingly attractive for those who strategically choose the ideal opportunity for their specific needs and skills.

For individuals still hesitant about taking on side hustles due to limited time and energy, it may be reassuring to hear that successful supplemental earners often find a valuable sweet spot. Rather than spreading themselves too thin by trying to juggle multiple low-reward gigs, they’re selecting side opportunities that align closely with their primary strengths and personal schedules. Ultimately, this move away from an overworked gig economy mindset toward smarter, strategic side hustling helps people better manage stress, maintain work-life balance, and still effectively supplement paycheck shortfalls in uncertain economic times.

ACTIONABLE STEPS

– Identify Your Highest-Value Skillset: Determine your most marketable skills or expertise and use this insight to pursue targeted, higher-paying side hustles rather than random or low-paying gig economy opportunities.
– Invest in Time-Efficient Activities: Choose side hustles that align well with your existing schedule and deliver high returns for comparatively fewer hours each week, protecting your energy levels and lifestyle.
– Prioritize Passive or Semi-Passive Earnings: Explore options like digital product sales, affiliate marketing, online teaching courses, or rental property investments within the gig economy that can generate money with minimal ongoing effort.
– Regularly Reassess Your Side Job Strategies: Every 6 to 12 months, reassess whether your current side hustle is well-aligned with your financial goals and energy levels, and adjust accordingly to stay profitable and stress-free.

CONCLUSION

In 2025, while the number of individuals turning to side hustles has dipped, the necessity for creative supplemental income strategies remains as relevant as ever. By staying strategic, driven adults continue to reap substantial financial rewards despite difficult economic conditions. The critical factor is choosing opportunities deliberately, rather than jumping into every available side hustle out of desperation.

With a purposeful, focused approach, side hustles will persist as a lifeline for Americans looking to close the widening gap presented by increasing costs and stagnant wages. Whether you’re new to the idea or a seasoned pro in earning supplemental income, thoughtfully considering your skills, available time, and passions ensures that your side hustles remain a valuable and sustainable part of your financial strategy.