The New American Dream
In the wake of the COVID-19 pandemic, the American dream is being redefined. Side hustles, once a supplementary source of income, have grown by a staggering 40% since 2022. The flexibility to monetize personal hobbies and the rising cost of living has driven this trend.
A study by SHRM showed a 34% increase in employees reporting side gigs from December 2020 to May 2022. According to Zapier, more than one-third of Americans have a side hustle, with millennials leading the charge. The average side hustle earns an extra $12,689 per year, with most side hustlers devoting five to 20 hours a week to their extra gig.
The biggest motivators? Personal freedom and extra income. With states like Mississippi, South Carolina, and Hawaii ranking high in the need for supplemental income, side hustles are not just a trend but a necessity for many. The new American dream is not just about owning a home or climbing the corporate ladder; it’s about pursuing passions, financial independence, and the freedom to shape one’s destiny.
Key Takeaways
- Side hustles have grown by 40% since 2022, becoming a new American dream.
- Millennials lead in engagement with the gig economy, seeking flexibility and financial independence.
- Employers face a delicate balance between supporting side hustles and ensuring focus on full-time jobs.
- Side hustles are expanding across generations, reflecting societal shifts.
- The future of side hustles requires understanding the balance between passion, profit, and practicality.
The Gig Economy and Millennials
The gig economy is thriving, and millennials are at the forefront. 48% of millennial workers are engaged in side hustles, according to a Bankrate.com survey, compared to 38% of Gen Xers and 28% of Baby Boomers. Side hustles extend beyond traditional ridesharing platforms like Uber or Lyft.
Millennials are walking dogs, teaching cooking classes, and selling artwork. The appeal? Flexibility. Platforms like Wag and Rover enable individuals to earn an extra $100 to $300 a week.
The gig economy is not just about making ends meet; it’s about enjoying life. 31% of millennials have taken on side hustles to boost their savings, a positive sign in a generation struggling with student loan debt and stagnant wages.
The gig economy offers millennials the opportunity to explore passions, build skills, and create a financial cushion, all on their terms.
Employers’ Perspective
The rise of side hustles raises questions for employers. Is the distraction of a side job affecting the performance of the primary one? Some studies suggest that side hustles can empower employees and enhance performance at their main job.
However, concerns about an employee’s dedication to the primary job are not uncommon. Transparency with employers about side hustles is crucial, but not all employees feel they can be open. The tight job market is forcing employers to get creative and loosen expectations.
While a side business might be unattractive to some employers, being open to entrepreneurial mindsets is essential for hiring and retaining talent. The balance between supporting employees in their side endeavors and ensuring focus on their full-time job is a delicate one, reflecting a new dynamic in the employer-employee relationship.
Side Hustles Across Generations
Side hustles are not exclusive to millennials. 39% of Gen Xers and 28% of Baby Boomers have engaged in the gig economy. The sharing economy has grown, offering convenient options for people to partake in side jobs whenever they have spare time.
Slow growth in wages has driven more workers across generations to seek opportunities outside their full- or part-time jobs. The options are now so varied that side hustles are seen as cool little things to do rather than burdensome work.
The explosion in opportunities has drawn people of different ages into side hustles, reflecting a broader societal shift towards flexibility, autonomy, and creativity in earning income.
Future of Side Hustles
The future of side hustles is promising yet uncertain. The romantic idea of working for oneself and making more money is appealing, especially to millennials. However, the reality is that the market dictates what one can charge, and hours vary depending on the service industry.
The rise in side hustles as the new American dream might be a millennial thing, but it’s also a reflection of a changing economy. Side hustles require sacrifice and drive. Many new businesses fail because people don’t know what it takes to make them successful.
The question to ask is why a side gig might be better than one job that offers everything needed. The future of side hustles lies in understanding the balance between passion, profit, and practicality.