Side hustle statistics this year show a rising interest in flexible earning opportunities, among people of virtually all ages and backgrounds. Facing a complex economy, lower wages, and a higher cost of living, more professionals are beginning to discover the benefits of side hustles for themselves.
But a side hustle isn’t just a phenomenal way to earn some extra income.
The right side hustle can offer creatives and professionals a new way to explore their passions, expand their skills, and even take more control over their career.
If you’re thinking of starting a side hustle in 2023, it’s worth checking out the latest side hustle statistics below, for an insight into how the economy looks right now.
What is a Side Hustle?
Before we dive into our list of enlightening side hustle statistics, it’s worth taking a moment to define what side hustling actually is. There are still plenty of people who confuse side hustles with part-time or secondary jobs. However, while, like a second job, side hustles can increase your income, they come with a lot more control and flexibility than traditional employment.
Side hustles are essentially small businesses, run by professionals who want to increase their income, working in the creator economy, gig economy, or digital world. Side hustles give professionals a new way to increase their income and job stability, while allowing them to pursue their passions.
The concept is particularly popular among younger generations, with up to 76% of Gen Z professionals saying they have a side hustle, and 62% of millennials saying the same.
The Popularity of Side Hustles in 2023
The studies show that side hustles have never been more popular. Around the world, professionals are looking at side hustles to increase their income, and unlock new opportunities in a digital world. As the economy continues to struggle, there’s a good chance side hustles will continue to grow.
In Australia, around 6.6% of the population now hold multiple jobs, including full-time roles and side hustles. That’s the highest number of secondary jobs ever recorded by the Australian Bureau of Labor statistics.
The numbers are growing elsewhere in the world too. According to a Bankrate survey, 1 in 5 US adults have a side hustle on average. The numbers are even higher among younger generations, with 50% of millennials and 53% of Gen Z professionals earning extra income on the side.
Some statistics suggest side hustles in America are even more popular. Insuranks found 93% of Americans had a side hustle.
In the UK, a CV-Library report found 58.2% of UK workers were planning on taking on a side hustle in 2023, driven by the priorities of extra income (38%), and job security (62%).
The latest trends in the job market could lead to an increase in people seeking side hustles too. With more professionals now taking advantage of flexible working contracts, there’s more scope for individuals to balance their traditional roles with side hustle opportunities.
What’s more, after initial trials of the four-day work week proved to be extremely effective, with 92% of companies saying they would likely continue with a shorter work week, employees may now have more time to themselves. An extra free day a week gives people plenty of opportunities to start exploring their passions with a side hustle or gig.
According to Side Hustle Nation, around 400,000 new businesses are now started every month, and anywhere up to 300,000 of these could be side hustles.
Side Hustle Demographic Statistics
Side hustles are pretty popular among every demographic at this point. As the digital world continues to evolve, there are numerous opportunities available both online and offline to people who want to increase their income, pursue their passions, and take more control over their careers.
According to Side Hustle Nation, however, there might be a slightly higher demand for side hustles among men (55%), than women (45%). Zapier shared similar statistics, suggesting around 44% of men have a side hustle, while around 37% of women invest in side hustle opportunities.
The studies show that side hustles are definitely more popular among younger generations, however. Backing up the Bankrate study mentioned above, Microsoft’s work trend index found around 70% of Gen Z workers were looking for side hustles in 2022, as well as 57% of millennials.
Interestingly, 64% of Gen Z professionals in a Side Hustle Nation report said they were planning on monetizing a project on social media, as part of the creator economy.
What’s particularly interesting is that side hustles aren’t just popular among low earners. Bankrate found 45% of side hustlers had an income of more than $100,000. Only 40% had an income of less than $50,000 per year, in comparison.
Reports from MillennialMoney.com also suggest people with a bachelor’s degree or higher are more likely to have a side hustle than less educated individuals.
The AmberStudent blog found side hustles were particularly popular in the US, as well as in regions like Singapore and Hong Kong. However, Side Hustle Nation found some states and cities in the US were more popular among side hustlers than others. The top 10 locations for side hustles were:
- Provo-Orem, UT
- Bridgeport, CT
- Raleigh, NC
- Salt Lake City, UT
- Lancaster, PA
- Denver, CO
- Austin, TX
- Portland, OR
- Portland, ME
- Minneapolis, MN
Side Hustle Nation also found that in some cities, including Atlanta, Washington, Salt Lake City, Orlando, and Miami, side hustling is up to 2.5 times more common than the national average.
Why Start a Side Hustle? The Key Motivators
So, what’s driving the continued rise of side hustlers? There are a number of factors, according to the latest studies. Bankrate found that 44% of side hustlers believe they’ll always need a second source of income, to contend with the changing cost of living issues.
Some of the most common reasons for starting a side hustle include:
- To make ends meet: Bankrate found the large majority of side hustlers are taking on extra roles because they’re struggling to pay bills. Additionally, 76.6% of people considering a side hustle in the UK said they were doing it because they wanted or needed extra income.
- Underpaid regular jobs: Around half of workers in a 2023 study said they believe they’re underpaid at their current job. This has prompted more employees to seek out extra income, so they can continue to live the lifestyle they believe they deserve.
- Inflation: Inflation is a major issue for many consumers in today’s world. By May 2023, inflation had increased by 4% year-over-year. This could mean employees need a side hustle just to pay for basic necessities, like food and fuel.
However, many side hustlers pursue their secondary career out of passion. Side Hustle Nation found that around 76% of people said they loved their side hustle, while only 50% loved their primary job. The company also found that employees hope to achieve a number of goals with their side hustles, including:
- More personal freedom (38.7%)
- Extra income for saving, investing, or spending (27.4%)
- Extra money to make ends meet (11.7%)
- Options to pay off debt faster (6.2%)
- Desire for a creative outlet (5.6%)
- Following a calling (4.6%)
Notably, the priorities of professionals are changing too, making a flexible side hustle a more appealing option to many individuals than a traditional secondary or part-time job. Around 47% of respondents in a Microsoft survey said they’re now prioritizing personal wellbeing and flexibility more than they were before the pandemic began.
Demand for flexibility is particularly important among Gen Z respondents, with around 58% saying they were considering leaving their jobs in the next year, and around 70% saying they were thinking about launching a side hustle.
How Much Do People Earn from Side Hustles?
One of the main reasons people seek out side hustles, is they need another way to make extra income, or pay their bills. Side hustles can be extremely lucrative, but the amount earned from each role can vary. Jobs that require more in-demand skills are likely to pay more.
Bankrate found that Americans make an average of around $810 per month from their side hustle. However, around 28% of people said they only make between $1 and $50 per month. Younger side hustlers appear to earn more, according to the study, with millennials earning around $1,022 per month, and Gen Z earning an average of $753 per month.
Experian suggests the average income for a side hustler is around $686 per month, while TheHustle.co suggests the average income could be around $1050 per month, with professionals working approximately 11 hours per week.
Side Hustle Nation’s survey found around half of all respondents were making less than $100 per month. Around 36.7% made up to $500 per month, and 19.2% made up to $1000 per month. 31.2% said they made between $1000 and $5000 per month, and around 7.5% said they earned up to $10k each month, with help from their side hustle.
What are the Highest Paying Side Hustles?
Of course, your income from a side hustle is likely depend heavily on the type of work you’re going to be doing. The income for side hustlers can vary drastically. Factors that influence your income range all the way from what kind of role you decide to pursue, to your location.
However, according to Side Hustle Nation, among the side hustlers earning over $1,000 per month, the top 3 business models are investing, freelancing/consulting, and online businesses. The interest in investing is particularly high among people earning over $10k per month.
Around 40% of millennials indicate their hustle makes up about half of their earnings, and men appear to earn more than women, with some earning as much as triple the average income of a woman. This could be due to the fact that many males take on more labour-intensive roles.
Millennial money found approximately 46% of all side hustlers earn at least $500 per month from their side hustle.
Interestingly, though side hustling is less common among older generations, people between the age of 55-64 do seem to earn a little more than other age groups according to some studies. Zippia’s side hustle survey found Gen Z employees between the age of 18-24 generally earn the least ($533 per month), while 55-64 year olds earn around $1.061 per month.
How Much Time Do Professionals Spend on Side Hustles?
Notably, the earnings obtained from side hustles may vary slightly depending on the number of hours a professional is willing to put into their role. Side Hustle Nation found the average side hustler spends between 11 and 16 hours a week on their business.
Combined with the company’s research into average earnings, this indicates that most people earn somewhere between $16 and $23 per hour from their side hustle. Just under 40% of side hustlers said they work around 5 to 20 hours a week on their business.
Interestingly, Side Hustle Nation’s survey found that among the people who earn less than $100 per month from their side hustle, around 75% said they usually spend less than 5 hours per week on their business. Among the individuals earning more than $500 per month, around 85% are spending more than 5 hours per week on their hustle.
In the category of people earning around $5000 per month or more, around 40% reported spending around 20 hours per week or less on their side hustle.
Vistaprint’s survey from 2019 found around 59% of people spend most of their time running their side hustle in the evenings when they get off work. Another 48% of people said they tend to focus on their side hustle during weekends, and only 27% said they work on their side hustles in the morning before they go to their typical job.
Notably, while younger generations appreciate the flexibility a side hustle can offer, particularly when it comes to work-life balance, side hustlers are willing to make sacrifices. According to one report, around 48% of people sacrifice time with friends and family to work on their side hustle.
Another 45% said that they have less time in their schedule for leisure activities and hobbies, and respondents also reported having less time for sleep, and exercise.
What are the Most Popular Side Hustles?
As the online world continues to evolve, the opportunities available to side hustlers are constantly increasing. Today, side hustlers can experiment with everything from dropshipping and print on demand businesses, to gig economy opportunities like freelance design.
Side Hustle Nation surveyed its user base and found the most popular side hustles were online businesses, which included everything from blogging and affiliate marketing, to podcasting, and creating and selling online courses.
Other popular options include:
- Ecommerce selling: Including starting a side hustle business on sites like Shopify, or selling on marketplaces like Etsy, Amazon, and Ebay.
- Freelancing and consulting: Working as a freelance writer, consultant, professional graphic designer, and similar side hustles.
- Investing: Investing in real estate, stocks, crypto, buying businesses, and other alternatives to build a wealth portfolio over time.
- Self-publishing: Creating and selling books, guides, how-to articles, and similar resources.
- Local services: Services for nearby consumers such as notary services, cleaning, pet waste removal, and dog walking.
- Creator economy roles, such as publishing on YouTube, creating podcasts, or working in the influencer marketing landscape.
- Software and app creation: Designing and publishing software for the digital landscape, including web and mobile apps.
- Gig economy jobs: Working in the gig economy by delivering food or resources, or driving people around with rideshare companies like Lyft.
The Side Hustle Nation team also looked at the number of people searching for specific phrases related to side hustles on Google. They found around 24,000 people search for terms like “how to start an e-commerce business” per month. This is followed by 20,000 people searching for terms related to starting a dropshipping business.
Zippia found similar insights when exploring the popularity of certain side hustles in recent years. A little over 16% of all side hustlers are invested in online and social media based jobs. Another 15.6% say they’re experimenting with delivery and rideshare driving.
Online store owners make up around 13% of all side hustlers, and freelance professionals, working on jobs like blogging and graphic design make up another 13%. Finally, around 7.8% of people said their side hustle roles revolve around selling designs or crafts.
Other side hustle opportunities can include refurbishing electronics to resell, selling old or unwanted items online, basking, baking, proofreading, and more.
What are the Biggest Challenges for Side Hustlers?
While side hustling generally offers a low barrier to entry to beginners, professionals in this landscape can still face a number of challenges, particularly when it comes to increasing income. According to Side Hustle Nation’s survey, the three biggest challenges side hustlers face include:
- Finding ways to grow and expand their business
- Managing their company with limited time
- Finding the right side hustle idea to make a good income
Interestingly, when struggling to find the right idea for a side hustle, most professionals build on their hobbies and passions. According to Vistaprint, around 27% of full-time workers started making money from a hobby. Another 55% said they decided to turn their hobby into a business, after looking for a secondary source of income.
This makes sense when we look at the reports from MBO Partners, who found around 63% of people who earn money in the creator economy are part-time creators, who combine their side business with a regular source of income from a traditional job.
The study also found that around 68% of creators earn most of their income from YouTube, followed by 56% who earn money from posting on Instagram, and 43% who focus on Facebook-based businesses. Around 41% of side hustlers also said they earn a significant income from TikTok.
Another point worth noting is that while finding time to run a side hustle alongside a traditional job was a major challenge for many professionals, side hustles don’t necessarily damage performance at a regular job. A report from the University of Iowa found having a side hustle can actually improve performance at a full-time job, and help professionals learn new skills.
Another report from the Academy of Management Journal found that having a side hustle can empower employees, and help them to boost their productivity levels.
The Rise of the Side Hustler Economy
The side hustle statistics above show that demand for side hustles is growing at an incredible rate. Today’s professionals are turning to side hustles as a way to increase their income and spending power in a difficult economy. However, earning extra money isn’t the only reason people decide to pursue a side hustle. Many also actively enjoy pursuing their passions with a secondary career.
Side hustles give professionals the freedom to explore new income earning solutions in the digital world. Additionally, ride-sharing and delivery company opportunities provide a lot of workers with an easy way to make extra income in their own time, with endless flexibility.
Side hustles, such as running an online store, or offering freelancer services can sometimes evolve into full-time earning opportunities too. This gives professionals more stability, with a guaranteed source of extra income if their traditional role doesn’t work out.
For anyone interested in the benefits of a side hustle, now could be the perfect time to start exploring opportunities and increasing your income.
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