Which demographics are picking up the extra income?
With inflation straining household budgets, more than half of Americans have turned to side hustles to make ends meet, according to a MarketWatch Guides survey conducted as early as 2024. This trend is even more common among younger generations, with 71 percent of Gen Z and 68 percent of Gen Z. Percentage of Millennials Engaged in Side Hustles Even 32 percent of Baby Boomers have some kind of side gig.
The survey also revealed that two-thirds of Americans live paycheck to paycheck, indicating that many people are financially insecure even with additional jobs. Among those with side hustles, 44 percent reported ongoing financial uncertainty, citing the high cost of living (30 percent) and insufficient income (22 percent) as major barriers to achieving financial stability. is
How do people find time to work extra hours? VistaPrint says that 48 percent of side hustlers work their weekend gigs, and 59 percent report working 5 to 9 a.m. during the week.
Inflation has been a major factor driving this trend. From late 2020 to mid-2022, inflation outpaced wage growth, meaning that purchasing power declined even as incomes rose. Inflation reached 9.1 percent in June 2022, while wage growth stood at 5.3 percent. Although inflation has since moderated, it remains above the Federal Reserve’s target, putting continued pressure on household finances.
The situation is particularly difficult for baby boomers, many of whom are nearing retirement age. As retirees living on fixed incomes, they have been hit hard by rising costs without benefiting from rising wages. This may explain why nearly a third of baby boomers have turned to side hustles to supplement their income.
According to Bankrate, working 12 hours a week for extra income earns an average of $1,122 a month. But 40 percent of Millennials say their side hustle makes up at least half of their monthly income. The Motley Fool showed a significant difference in earnings by gender, with men earning an average of $989 a month and women reporting $361 for their side jobs. The gap also reflects more labor-intensive jobs for men, such as repair or landscaping.
As economic stress and aging demographics collide, the side hustle trend is here to stay—presenting a solid opportunity for direct selling companies to provide much-needed relief and flexibility.
from October 2024 The problem of Direct Selling News. Magazine