Side hustle statistics 2026: Income, trends & insights

Gen Z stands out with a strong focus on savings, with nearly 7 in 10 prioritizing it. However, about one in three are more likely to pursue side hustles out of passion, a higher rate than older generations.

23. Flexibility is one of the top reasons people turn to side hustles

Two-thirds of gig workers say the ability to set their own schedule makes gig work more attractive than traditional office jobs. In fact, 63% believe the growth of the shared economy is driven by workers prioritizing flexibility over conventional career paths.

For many, the flexibility of a shorter workweek is appealing. In the U.S., 44% of side hustlers would leave their full-time jobs for four-day workweeks. Among those who have already made the switch, more than half (53%) point to the desire for better flexibility and work-life balance as their main reasons.

24. One in five side hustlers aim to replace their job with a side gig

While the majority focus on making extra money, 20% are working towards building a side hustle that could eventually replace their jobs. This aligns with our small business statistics showing that 28% of those starting a business aim to be their own boss.

Additionally, the fact that 51% of people believe gig workers are happier than office workers may further fuel the desire to leave a traditional job for more independence.

25. 85% of side hustlers are at least somewhat happy with their jobs

An impressive 85% of those with a secondary income stream report being at least somewhat happy with their current employment, compared to three-fourths of those without one and just over half of those currently seeking a side gig.

However, job happiness tends to be lower among those in self-employed secondary jobs versus those who are primarily self-employed or full-time employed.

The biggest challenges side hustlers face today

As the gig market continues to grow, taking on side gigs presents its own set of challenges. By examining key concerns highlighted in our survey on starting a business in 2025, we can uncover opportunities to overcome these obstacles and thrive in the industry.

26. Financial risk is the biggest concern when starting a side hustle or small business

The primary reason 30.51% of Americans drop their side hustle or small business is financial risk, with over half fearing financial loss or debt. About one in four aspiring entrepreneurs cite insufficient financial re necessary funds to even get started

27. Nearly half of side hustlers worry about finding clients or customers

Attracting customers is their biggest challenge when starting a small business or side gig for 46.95% of the people. While less prominent, this concern is closely linked to other challenges, such as managing the responsibilities of scaling a business (16.5%) and dealing with negative reactions or judgment from others (14.37%).

28. Over a third of side hustlers are concerned about legal or tax issues

38.2% of aspiring side hustlers struggle to understand tax and legal requirements. Additionally, 20.21% fear potential legal or compliance issues, underscoring the challenges of staying compliant while juggling the demands of a growing business.

29. Nearly one in three side hustlers struggle to manage their time effectively

Managing time is a challenge for 32.82% of side hustlers, who struggle to balance business tasks with other commitments. This issue is linked to burnout, with one in five small business owners experiencing it frequently and over half facing it occasionally. Only 7.67% reported never feeling burnout, showing how time management struggles can impact one’s overall well-being.

30. Almost one-third of aspiring side hustlers feel they lack the skills to succeed

30.89% of aspiring gig workers worry they lack the skills to succeed. This challenge is reflected in the 10.24% of respondents who abandoned their side hustles due to skill gaps.

Those who continue cite technical skills as a barrier ‒ 17.99% struggle with website building, 10.54% find graphic design challenging, 9.9% face difficulties with coding, and 9.05% encounter issues with eCommerce tools.

31. For 28% of American side hustlers, side gigs are essential to make ends meet

While many Americans take on side gigs to build savings, one in four believe they’ll always need one just to cover basic expenses. A similar proportion (26%) feel they’ll always need a side hustle for optional spending, and 23% dedicate more time to their side gig due to inflation. Interestingly, 20% would prefer not to work a side hustle but feel they have no choice.

Emerging side hustle trends

As the side gig industry continues to evolve, new trends are shaping how individuals approach their secondary income streams. The following statistics provide valuable insights into these emerging trends, helping you stay ahead and better prepare for what’s to come.

32. Side hustling is a growing trend, with 52% starting post-2022

More than half of American side hustlers have been earning money on the side for two years or less, with 24%starting within the past year. Younger generations are driving this trend, as 77% of Gen Z and 52% of millennials have started their side hustles in the last two years. In contrast, only 36% of Gen X and 41% of baby boomers are in the same category.

This rise in side hustles can be partly due to the 9.1% inflation rate in 2022, the highest since 1981, which pushed many to seek extra income after the COVID-19 pandemic.

33. Passive income side hustles are becoming more popular

Affiliate marketing is gaining traction as a popular passive income side hustle, with the industry valued at $18.5 billion. According to our affiliate marketing statistics, over 80% of businesses now incorporate affiliate marketing into their digital strategy.

The education and elearning sectors are among the highest-paying, driven by increasing demand for online courses and certification programs. Unsurprisingly, Amazon’s affiliate program leads the market, holding a 46.21% share.

34. AI-powered side hustles are gaining traction with a 28% rise in interest

Interest in AI-powered side hustles has grown by nearly a third in the past year, with over half of side hustlers planning to use AI tools like ChatGPT for their work. 43% of side hustlers believe AI will boost productivity.

35. Non-linear careers are gaining traction through side gigs

As lifetime employment fades, side gigs help individuals build new skills and stay competitive. This shift is driving businesses to find alternative workforces.

Micro, small, and medium-sized enterprises (MSMEs) and startups are increasingly turning to online gig workers to tap into a larger talent pool, reduce costs, and overcome traditional hiring barriers. The main reasons for hiring gig workers include accessing skills not available in-house (60%), flexible costing options (43%), and cost savings (33%).

36. Three emerging side hustle personas are shaping the future of entrepreneurship

So-called Soul traders, who represent 79% of side hustlers, build their ventures around passions and personal interests. Those with this side hustle persona are motivated first and foremost by the joy and fulfillment their side projects bring.

Hashtag Hustlers (59%) tap into social media trends to capture audience attention. They quickly adapt products or services to viral topics, boosting visibility and sales in a short period.

And finally, there are tri-hustlers, making up 37% of gig workers, juggling multiple gigs at the same time. Diversifying income streams helps them keep earning, even if one slows down.

These three personas highlight the range of motivations and methods fueling modern side hustles.

Key takeaways

Key findings we presented in this article highlight just how side hustles are becoming a vital part of the modern workforce, particularly among parents with children under 18 and younger generations like Gen Z and Millennials. With one in eight workers participating in the online gig economy, the market is expected to reach $2.15 trillion by 2033.

While challenges such as gender pay gaps and a lack of skills could hinder success, emerging trends are opening up new opportunities. AI-powered side hustles and passive income streams like affiliate marketing offer ways to bridge these gaps and boost overall income.

Side hustles may even be replacing traditional, linear career paths. The majority of gig workers report satisfaction with their jobs, and more companies are turning to gig workers to reduce costs and address hiring bottlenecks.

The future of work is evolving, and side hustles are leading the way.

Sources

Statistics FAQ

What is a side hustle?

A side hustle is any job or business you do in addition to your main job, often with a flexible schedule. It usually requires a smaller commitment, ranging from a few hours a week to part-time. The type of work can vary, from offering services to selling products, helping you earn extra income or pursue a passion.

What percentage of people have side hustles?

More than u003cstrongu003e36%u003c/strongu003e of U.S. adults earn extra income through a side hustle. Globally, between u003cstrongu003e4.4-12.5%u003c/strongu003e of the labor force is part of the online gig economy.

What percentage of Gen Z reports having a side hustle?

u003cstrongu003e48%u003c/strongu003e of Gen Z have a side hustle, making it the highest percentage of any generation.

How successful are side hustles?

The success of side hustles varies, but many people report positive outcomes. About u003cstrongu003e20%u003c/strongu003e of side hustlers aim to turn their gig into a full-time business, and over u003cstrongu003e85%u003c/strongu003e are at least somewhat satisfied with their side hustle. However, success depends on factors like effort, market demand, and the skills involved.

This article is a localized version of Side hustle statistics for 2026: Key data, trends, and what they mean, originally published in English.