tl;dr
As inflation strains household budgets, two-thirds of Americans are considering a second job to cope with rising costs and stagnant wages, revealing a generational divide and the growing reliance on gig economy opportunities.
As inflation continues to strain American household budgets, a growing number of workers are turning to side gigs to bridge the financial gap. According to a survey by the American Staffing Association, nearly two-thirds of currently employed Americans are considering a second job within the next year, driven by rising prices and stagnant wage growth. This trend is particularly pronounced among parents and younger generations, who face unique pressures in an economy where savings are dwindling and financial stability feels increasingly elusive.
The cost of living has surged over the past few years, exacerbated by inflation and recent tariffs that have pushed prices higher. In 2024, the median household income rose by just 1.3% to $83,730, while inflation climbed 2.9% over the same period, according to the Census Bureau. This disparity has left many families scrambling to cover essentials, with nearly 20% of Americans reporting they could survive less than a month without income. For parents, the need is even more urgent: 75% of those with minor children say they plan to take on a side gig, compared to 55% of adults without children.
Flexible work opportunities, such as ride-sharing, delivery services, and freelance platforms, have become lifelines for many. Companies like Uber, DoorDash, and Etsy offer the ability to earn extra income on one’s own schedule, a critical advantage for those juggling multiple responsibilities. However, the appeal of side gigs extends beyond necessity. For some, they represent a path to financial security, debt repayment, or even career transitions. “A side hustle can be a good way to build savings, pay off debt, or change careers,” said Richard Wahlquist, CEO of the American Staffing Association, highlighting the dual role of these jobs as both a coping mechanism and a strategic move.
Generational divides further shape this trend. Millennials and Gen Z workers, who have seen wages lag behind inflation, are more likely to seek additional income than older generations. Bank of America data shows younger Americans are falling further behind despite cutting spending, with many finding it harder to boost earnings through traditional job-hopping. Meanwhile, the resumption of student loan payments has forced borrowers to trim budgets elsewhere, adding another layer of financial strain.
Economic uncertainty also looms. Companies are hesitating to invest amid unclear impacts of tariffs and other factors, leading to slower hiring and reduced hours for lower-income workers. This environment has made side gigs not just a supplement, but a necessity for many.
As the economy evolves, the reliance on second jobs may persist, reflecting deeper shifts in how Americans approach work and financial resilience. For now, the gig economy remains a vital, if imperfect, solution to a growing crisis.