Have you ever felt the urge to pick up a side hustle, maybe driving for a rideshare app or selling handmade crafts online, just to make ends meet? For years, millions of Americans did just that, juggling extra gigs to cope with rising costs and economic uncertainty. But something’s shifting in 2025—a recent survey reveals that fewer people are taking on side hustles for the first time in nearly a decade. This change caught my attention, not just because it’s a break from the norm, but because it hints at a deeper transformation in how we manage money and work. Let’s dive into why this is happening, what it means for you, and whether the side hustle era is truly fading.
The Decline of the Side Hustle: What’s Going On?
The hustle culture that defined much of the past decade seems to be losing steam. According to recent financial research, only 27% of working Americans now have a side hustle, down from a high of 36% just a year ago. That’s a significant drop, and it’s the lowest percentage since 2017. So, what’s behind this trend? Is it a sign of financial relief, or are people just too burned out to keep juggling multiple jobs?
In my view, this shift feels like a mix of both. The economy has been a rollercoaster, with inflation hitting hard in recent years. But there’s good news: wage growth has started to outpace inflation, giving people a bit more breathing room. This could mean fewer folks need to moonlight to cover basic expenses. Yet, I can’t help but wonder—could this also reflect a growing desire for work-life balance over grinding for every extra dollar?
A Stronger Job Market Eases the Pressure
One major factor in the decline of side hustles is the job market’s relative stability. Recent data shows that unemployment rates have remained low, and layoffs haven’t spiked dramatically. This stability means more Americans are finding their primary jobs sufficient to cover their needs. As one financial analyst put it:
When the job market is solid, and wages are growing faster than inflation, people feel less urgency to take on extra work.
– Financial industry expert
This makes sense. If your full-time job is paying the bills and leaving a little extra, why spend your evenings driving strangers around or managing an online store? For many, the answer is simple: they don’t need to. This shift is especially noticeable among younger workers, who were once the backbone of the gig economy.
From Necessity to Nice-to-Have: How Side Hustles Are Changing
Back in 2022, side hustles were at an all-time high. With inflation soaring and economic uncertainty looming, many Americans turned to extra gigs to cover essentials like rent, groceries, or student loans. Fast forward to today, and the purpose of side hustles seems to be evolving. Instead of being a lifeline, they’re becoming a way to fund discretionary spending—think vacations, hobbies, or that new gadget you’ve been eyeing.
This change is a subtle but powerful indicator of financial confidence. When you’re not scrambling to pay the electric bill, that extra cash from a side gig can go toward something fun or fulfilling. It’s a refreshing shift, but it also raises a question: are we really out of the woods economically, or is this just a temporary breather?
Who’s Still Hustling and Why?
Not everyone’s ditching their side gigs. The data suggests that younger Americans, particularly those aged 18 to 44, are still more likely to have a side hustle than older generations. Why? For one, they’re often earlier in their careers, with lower salaries and bigger financial goals—like buying a home or paying off debt. Plus, they’re more comfortable with the gig economy’s flexibility, from freelancing to content creation.
- Younger workers are used to juggling multiple income streams.
- They often have bigger financial goals, like homeownership or debt repayment.
- Technology makes side hustles more accessible than ever.
But even among this group, the decline is noticeable. It’s as if the cultural tide is turning—maybe people are starting to value their time as much as their money. I’ve seen friends who used to spend weekends on side projects now choosing to relax or invest in hobbies that don’t pay. It’s a small but meaningful shift.
Inflation’s Role: A Double-Edged Sword
Inflation has been a driving force behind the side hustle boom, but it’s also a key reason for the current decline. Recent figures show inflation cooling slightly, with the consumer price index rising 2.7% over the past year, up from 2.4% a few months earlier. While that’s still higher than ideal, it’s a far cry from the record highs of a couple of years ago. This slowdown has given people a chance to catch up financially.
However, inflation isn’t gone for good. If prices start climbing again, we could see a resurgence in side hustles. As one economist noted:
Rising inflation creates urgency for extra income, especially in a cooling job market.
– Economic researcher
This push-and-pull dynamic is fascinating. When costs rise, side hustles become a necessity. When they stabilize, people pivot to using that extra cash for fun or savings. It’s a reminder that our financial choices are deeply tied to the broader economy.
The Burnout Factor: Are We Done Hustling?
Let’s be real—side hustles can be exhausting. Balancing a full-time job with a gig on the side often means sacrificing sleep, social time, or personal hobbies. I’ve always admired people who can pull it off, but I’ve also seen the toll it takes. Could burnout be part of why fewer people are hustling?
The data doesn’t directly address this, but it’s hard to ignore. In a cooling job market, people tend to play it safe, sticking to their primary jobs rather than risking burnout on a side gig. Plus, with wages growing, the financial reward of a side hustle might not feel worth the effort anymore. It’s like choosing between an extra $500 a month and a good night’s sleep—sometimes, sleep wins.
What This Means for Your Financial Future
So, where does this leave you? If you’re one of the 27% still hustling, you might be wondering whether it’s time to scale back. If you’ve never had a side gig, this could be a sign that you don’t need one—at least not right now. Here’s a quick breakdown of what to consider:
- Assess your needs: Are you hustling to cover essentials or to fund extras? If it’s the latter, you might have room to cut back.
- Check your energy: Are you feeling burned out? Prioritizing rest could improve your overall productivity.
- Watch the economy: If inflation spikes or the job market tightens, a side hustle could become a safety net again.
Personally, I think the decline in side hustles is a mixed bag. It’s great that people feel less financial pressure, but it also means we’re still tethered to economic cycles. A sudden shift—like new tariffs or a spike in inflation—could bring side gigs back in a big way.
The Bigger Picture: A Cultural Shift?
Beyond the numbers, this decline in side hustles feels like part of a broader cultural shift. For years, we’ve glorified the hustle—working harder, longer, and smarter to get ahead. But maybe people are starting to question that mindset. Is it possible we’re moving toward a world where balance matters more than bank accounts?
I’m not saying the side hustle is dead—far from it. But the fact that fewer people feel the need to take one on is telling. It’s like we’re collectively exhaling, taking a moment to enjoy the fruits of our labor instead of chasing the next dollar. That said, I wouldn’t be surprised if side hustles make a comeback if economic conditions tighten.
| Economic Factor | Impact on Side Hustles |
| Stable Job Market | Reduces need for extra income |
| Wage Growth | Allows focus on discretionary spending |
| Rising Inflation | Increases urgency for side gigs |
The table above sums it up nicely: our relationship with side hustles is a dance with the economy. When times are good, we step back. When they’re tough, we lean in.
Tips for Navigating the New Normal
Whether you’re a side hustle veteran or just curious about the trend, here are some practical tips to adapt to this changing landscape:
- Evaluate your goals: If your side hustle is draining you, consider if the extra cash is worth it. Maybe redirect that energy to a passion project.
- Stay flexible: Economic conditions change fast. Keep an eye on inflation and job market trends to decide if a side gig makes sense.
- Invest in skills: If you do want a side hustle, focus on high-value skills like freelancing or digital marketing that can pay off long-term.
These strategies aren’t just about money—they’re about finding a balance that works for you. In my experience, the best financial decisions come from knowing what you value most, whether it’s time, freedom, or a bigger savings account.
Will Side Hustles Bounce Back?
Despite the current decline, don’t count side hustles out just yet. Experts predict that if economic pressures like inflation or job market uncertainty return, more Americans will pick up extra gigs again. The gig economy is built on flexibility, and that’s not going anywhere. As one researcher put it:
The side hustle boom of 2023 may have been a peak, but it’s not the end of the story.
– Economic analyst
This resilience is part of what makes side hustles so fascinating. They’re not just a financial tool—they’re a reflection of our adaptability. Whether you’re hustling now or taking a break, the key is to stay ready for whatever the economy throws your way.
So, what do you think? Are you feeling the financial relief that’s letting people step away from side hustles, or are you still grinding to get ahead? Either way, this shift is a reminder that our relationship with work and money is always evolving. Maybe it’s time to take a step back, reassess, and find what balance looks like for you.
