Side gigs go from nice to have to necessity
The American worker is exhausted, and a new survey reveals why: 1 in 3 employees are juggling side hustles just to cover basic living expenses.
In Patriot Software’s survey of 1,000 Americans, 34% reported starting a side hustle specifically to pay for necessities — not luxuries or savings goals but rent, food and utilities. With 60% citing inflation and rising costs as major drivers, what was once positioned as entrepreneurial ambition has become about financial survival.
The survey found that 50% of full-time workers spend more than 10 hours weekly on one or more side hustles, time that could otherwise go toward rest, family or full engagement with their primary employer. While 80% of respondents say a side hustle makes them feel more financially secure, that perceived security comes at a cost.
Sam DeMase, career expert at ZipRecruiter, warns that the current model is unsustainable: “Employees are burnt out and less invested in their full-time role because they need to split their focus to make ends meet and survive.” The result? Higher turnover costs, reduced innovation and cultural fragmentation.
When employees work 40-50 hours at their primary job, then add another 10+ hours of gig work, burnout isn’t a risk, according to experts; it’s inevitable. That reality affects productivity, engagement and retention in ways that traditional HR metrics may not fully capture.
Jason Leverant, president and COO of AtWork, frames the issue bluntly: “When 1 in 3 Americans has to get a second source of income just to cover basic living expenses, you know we have a problem,” he said.
The survey’s findings on Gen Z are particularly telling. More than half of Gen Z gig workers say their side hustle makes them feel more hopeful about their future. For the youngest cohort in the workforce, supplemental income isn’t just a stopgap but has become central to their financial outlook and career planning.
The path forward necessitates an honest assessment of compensation strategies. Are employers’ full-time positions paying a living wage that reflects current economic realities? The survey shows that one-quarter of side hustlers are confident they could transition their gig into full-time work, suggesting that some are already planning their exit from traditional employment.
Organizations that fail to address wage stagnation risk losing talent to competitors who will. Leverant notes that while gig opportunities may feel like flexibility, they are “more of a short-term bandage for a longer-term problem.”
Experts say without healthcare, retirement benefits or income stability, gig work cannot replace what quality full-time employment should provide.
The side hustle economy has gone from a trend to a warning bell. As DeMase notes, “change needs to happen before the current model collapses.”
For HR leaders, that may include re-evaluating compensation packages, understanding the true financial pressures facing employees and advocating for wages that eliminate the need for side hustles in the first place.
The workforce is telling employers something. The question is whether the boss will listen before burnout and turnover force the issue.