Nearly half of American workers now earn money from multiple gig economy jobs or side hustles, according to recent data. For most, the motivation is survival: more than half say the extra income is essential to cover basic expenses. Consumer prices are up 24% from pre-pandemic levels, pushing workers to seek additional income streams.
The appeal of gig work is real. Workers gain flexibility to choose when and how much to work. Some, like Eva Kirie, value the independence to determine their own pay and work creatively without approval from a supervisor. Kirie manages social media for clients in New York City and creates content for over 40,000 followers.
But the freedom comes with steep costs. Nearly 70% of respondents to a SideHustles.com survey said their extra gigs were causing burnout. Gig workers often lack wage growth tied to inflation, steady paychecks, and employee benefits. They miss legal protections like paid sick leave and unemployment insurance, creating ongoing financial uncertainty.
The Department of Labor recently signaled that gig workers will continue to be treated as independent contractors, not employees. This means benefits remain out of reach for most.
Returning to traditional employment after years of gig work presents another challenge. Kelsey Szamet, an employment attorney with Kingsley Szamet Employment Lawyers, says skills built through side hustles like time management and adaptability don't always align with what traditional employers seek. Companies still prioritize communication, organization, and teamwork. Without colleagues or mentors, gig workers often lack the professional networks needed to find their way back into structured jobs.
Szamet advises workers to treat side hustles as skill-building opportunities rather than permanent solutions. She recommends formalizing skills through certification or training programs and developing transferable skills like customer service and internet skills.