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Unlocking the Side Hustle Economy, According to Statistics
Insights on Earnings, Top Trends, and Key Challenges
Morgan Graff
January 31st, 2024
Understanding the Side Hustle Landscape
The side hustle has become a significant part of the American work culture. According to recent data, 39% of working Americans now have a side hustle. This trend is even more pronounced among millennials, with 50% engaging in various forms of secondary income generation.
For those considering joining this growing movement, the statistics are encouraging. About 35 million people, or 17% of the working-age population, plan to start a business. Gen Z is particularly active, with 70% looking for a side hustle and 64% planning to monetize projects on social media.
But it's not just the younger generation. Even 24% of baby boomers are getting into the game. In the UK, the trend is similar, with 42% of Gen Z and 39% of millennials pursuing side hustles.
The motives are clear. The primary goal, as per a 2023 Pinger survey, is increasing income, cited by 80%. In a time of economic uncertainty, 41% need extra money to make ends meet, with inflation playing a role for 29% of side hustlers.
Financially, side hustles can be lucrative. The average monthly income is $1,122, with a median of $200. About 44% earn between $101 and $500 per month, and 25% make between $1,001 and $5,000. Impressively, 5% even earn $5,000 to $10,000, and another 5% surpass $10,000 monthly.
Time investment varies. Most side hustlers spend 11-16 hours weekly, earning an average of $16-23 per hour. About 54% are between 18 and 34 years old, with nearly 40% of side hustlers having household incomes of $100,000 or more.
The most popular side hustles range from online businesses and freelancing to investing and local services. For those earning over $5,000 a month, online business, freelancing, and local services top the list.
This data offers a vivid picture of the side hustle landscape, highlighting not just its prevalence but its potential for those looking to diversify their income and gain more financial freedom.
Statistic | Data |
|---|---|
Percentage of working Americans with a side hustle | 39% |
Percentage among millennials | 50% |
Additional people planning to start a business | 35 million (17% of working-age population) |
Gen Z looking for a side hustle | 70% |
Gen Z planning to monetize a project on social media | 64% |
Percentage of baby boomers with a side hustle | 24% |
Percentage in the UK (Gen Z) | 42% |
Percentage in the UK (millennials) | 39% |
Percentage using surveys and selling items online | 93% |
Primary goal for starting a side hustle (2023 Pinger survey) | 80% for increasing income |
Percentage needing extra money to make ends meet (Bankrate) | 41% |
Inflation as a factor (2022) | 29% |
Percentage for more personal freedom | 31.2% |
Percentage for extra income to save, spend, or invest | 28.3% |
Average monthly income from side hustles | $1,122 |
Median monthly income from side hustles | $200 |
Percentage making $101-$500 per month | 44% |
Percentage making $501-1000 per month | 21% |
Percentage making $1001-5000 per month | 25% |
Percentage making $5-10k per month | 5% |
Percentage earning over $10k a month | 5% |
Average weekly time spent on side hustles | 11-16 hours |
Average hourly earnings from side hustles | $16-23 |
Percentage spending less than 5 hours per week | 53.8% |
Percentage spending 5 to 10 hours per week | 23.8% |
Percentage spending 11 to 20 hours per week | 13.3% |
Percentage spending 21 to 40 hours per week | 7.2% |
Percentage spending more than 40 hours per week | 1.9% |
Most popular side hustles | Online Business, E-Commerce, Freelancing/Consulting, Investing, Quick Cash Side Hustles, Local Services, Self-Publishing, Gig Economy jobs, Software and Apps |
Top 3 business models among those earning over $5,000 a month | Online Business, Freelancing/Consulting, Local Services |
Percentage of side hustlers with household incomes of $100,000 or more | Nearly 40% |
Gender distribution of side hustlers | 45% female, 55% male |
Age distribution of side hustlers | 54% are 18-34 years old |
Side hustle interest increase since 2015 | Dramatically increased |
Percentage of respondents who love their side hustle (The Hustle) | 76% |
Top challenges for side hustlers | Growing business, limited time, finding the right idea |
Percentage of full-time workers making money from a hobby | 27% |
Percentage wanting to turn a hobby into a business | 55% |
Impact on full-time job performance | Can boost performance |
Metro areas with most side hustlers | Atlanta, Washington, DC, Salt Lake City, Orlando, Miami, Hartford, Myrtle Beach, Boston, Ft. Myers, St. Louis |
New businesses started each month (2023, US Census Bureau) | Over 400,000 |
Estimated new side hustles started annually | Nearly 3.6 million |
This data provides a comprehensive overview of the current state of side hustling in the United States, including demographics, motivations, income levels, time investment, and popular types of side hustles.
Data Source: Side Hustle Nation
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