In a time when the U.S. job market is showing signs of cooling, it is not surprising to see an increase in first-time unemployment claims and a growing number of Americans living paycheck to paycheck. According to a recent report by PYMNTS Intelligence, 64% of Americans now find themselves in this precarious financial situation. What is surprising, however, is the finding that one-quarter of Americans earning more than six figures a year are turning to side hustles to generate extra income.
The report, titled “Tracking Consumer Use of Supplemental Income Sources,” surveyed over 4,200 U.S. consumers and found that 22% of all Americans are working side gigs to enhance their cash flow. While one might assume that those struggling to make ends meet would be the ones most likely to take on extra work, the data tells a different story. Only 23% of paycheck-to-paycheck Americans who find it challenging to keep up with their monthly bills are currently working side jobs, a decrease from 29% reported last year.
Interestingly, it is the high-income earners who are most actively pursuing supplemental income. The report reveals that 26% of workers earning more than $100,000 per year have engaged in side jobs in recent months, the highest percentage among the income groups surveyed. This goes against the common belief that those with higher incomes would not need to seek additional sources of income.
The report also delves into how consumers are actively earning supplemental funds. Selling used goods emerges as the most popular and accessible side hustle for those looking to boost their income. Thirty-one percent of all consumers surveyed have sold a used item in the last 12 months, while over 40% have bought a secondhand item this year. Interestingly, age seems to be a more significant factor than financial standing when it comes to reselling items, with younger consumers being the most active in this space.
Gen Z, in particular, stands out as the age group most likely to engage in selling and buying secondhand goods. Forty-seven percent of Gen Z consumers have sold used items, and a staggering 74% have purchased such items. Even among paycheck-to-paycheck consumers struggling to pay bills, a significant percentage are involved in reselling items to make extra money.
The report concludes that while a slightly smaller percentage of U.S. consumers are living paycheck to paycheck compared to last year, more individuals are turning to side hustles to supplement their income. It highlights that higher earnings do not necessarily preclude people from seeking additional sources of income. In fact, affluent consumers seem to find comfort in the financial cushion that side hustles provide.
Overall, the data paints a picture of a diverse and dynamic landscape where Americans across different income brackets are actively seeking ways to boost their financial stability. Whether it’s selling used goods, taking on informal tasks, or investing in side projects, the trend of working side gigs to earn extra income is on the rise. As the job market continues to evolve, it is clear that the concept of traditional employment is shifting, and more individuals are embracing the idea of diversifying their income streams through side hustles.
