The era of juggling multiple gigs might be winding down. After years of Americans earning extra income through dog walking, ridesharing, and online selling, the side hustle frenzy appears to be cooling off.
Just 27% of working Americans currently maintain a second income stream, according to a recent Bankrate’s survey. That’s down from 36% last year and marks the lowest level since 2017.
Has something fundamental shifted in how Americans view their financial security?
Why the hustle is losing its urgency
Ted Rossman, senior analyst at Bankrate, points to a surprisingly simple explanation: “I would attribute the drop [to the fact that] the job market has been solid. I know it still feels like everything is expensive, but we’ve had wage growth outpacing inflation for a few years now, which has given people time to catch up a bit.”
A few years ago, side hustles hit their peak. Inflation hit record highs, and nobody was quite sure what would happen next. Americans responded by turning every spare moment into potential income through delivery apps, online marketplaces, and weekend gigs. Now, with more financial breathing room, the urgency to hustle seems to be fading.
A shift in spending priorities
It appears that those who still maintain side hustles aren’t using the money in the same way. Instead of using it to cover rent and groceries, more Americans now direct their extra earnings toward discretionary spending. A vacation or a home improvement project they’ve been planning.
This shift reveals growing economic confidence. When people use side hustle income for wants rather than needs, it signals that they’re feeling more secure about their financial future, even with lingering uncertainty surrounding new tariff policies and a job market that remains challenging for many job seekers.
Who is still hustling hard
Not everyone is abandoning their extra gigs at the same rate. Workers between 18 and 44 show more staying power in the gig economy. They’ve grown up viewing multiple income streams as the norm, not the exception.
These younger workers have already built the infrastructure. The apps are downloaded, the profiles are optimized, and they know which gigs fit their schedules. If economic conditions shift, they will likely be the first to ramp up their side work again.
Rethinking your side hustle strategy
If you’re among the 27% still maintaining extra income streams, this trend offers a chance to reassess. Are you still in survival mode when you could be building wealth? That Uber income that once covered groceries might now accelerate your retirement savings or fund investment accounts.
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For those who’ve recently stepped back from side work, perhaps you should not dismantle everything you’ve built. Keep those skills current and maintain your network. Economic conditions can shift quickly, and having a ready backup plan provides valuable peace of mind.
Consider this moment an opportunity to be strategic rather than reactive. If you’re no longer desperate for extra cash, you can be selective about which gigs truly deserve your time and energy. How about an income stream that requires barely any effort? This company's members take surveys in their free time and collectively earn over $55,000 daily.
What comes next for gig work?
Recent inflation data adds nuance to the outlook. The consumer price index rose 2.7% over the last year through June, up from 2.4% in May, according to the Bureau of Labor Statistics. This modest uptick could influence Americans’ calculations about the need for extra income.
Morning Consult economist Kayla Bruun observes that starting a side hustle requires effort and involves risk, factors that make employed workers hesitant during uncertain times. She notes that rising inflation could create renewed “urgency for side gigs.”
For now, the breathing room offers a chance to plan rather than react. Update your marketable skills, maintain your gig economy accounts, but focus your primary energy on maximizing your main income source. When the next economic shift arrives, you will be ready to adapt from a position of strength.
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