As inflation continues to climb in the United States, more and more adults are turning to side jobs to earn extra money, whether they are already working in high-paying jobs or not.
New data from online lending market LendingTree found that 44% of Americans now have a secondary income, up 13% from two years ago.
The majority of the shadow workforce is made up of Gen Z, followed by Gen Y, then Gen X.
On top of that, many families wouldn’t be able to make ends meet if there wasn’t a side hustle, with 71% saying they wouldn’t be able to pay all their bills if they didn’t. there was no extra income. .
It’s not just people at risk either, with 54% of respondents confirming that they have at least one child under the age of 18.
The news unfortunately comes as no surprise to LendingTree’s chief credit analyst Matt Schulz, who said the pandemic has “emboldened” many people to try side hustle, but the economic headwinds of 2023 give now also people the need to earn more money.
“Most of the time, everything has gotten more expensive, and that eats away at people’s financial margin of error. It’s especially troubling when the cost of the most basic expenses goes up, because it’s not like you can choose cancel your utility bill or stop shopping on the way.” you can subscribe to Netflix,” he said.
The average side hustle will bring in about $473 per month – $5,700 per year – from jobs including reselling items on sites like Amazon or eBay, day trading, tutoring or online freelancing.
How much you can earn also depends on experience, with average side job earnings showing a correlation with an individual’s primary income.
People earning between $35,000 and $49,999 make about $410 a month from their side jobs, which is about 10% of their main income.
Those earning between $50,000 and $74,999 earn $487 per month, and those earning between $75,000 and $99,999 can earn an additional 7% on top of their income, or about $555 per month .
The survey even spoke to people who already earn over six figures, who bring in an average of $638 extra per month from their side gigs.
What are the most requested side hustles?
Freelancer.com — a website that publishes freelance work in everything from ghost romance novels to software engineering — reviewed 372,000 of its posts from October to December 2022.
He revealed that programming, report writing and research-related roles were among the top-ranked categories.
The trend is being driven by companies looking to take their year-end reporting over the line and offload heavy lifting to freelancers. Job applications for report writing soared 59.5% from 3,374 to 5,384 in the quarter.
Also popular are candidates with Matlab and Mathematica training, which are two separate programs used by engineers to analyze data.
Research jobs and research writing filing positions were the third and fifth most in-demand skills, with growth of 36.3% and 32.1% respectively.
The search for tech skills is a result of widespread tech layoffs, said Matt Barrie, CEO of Freelancer.com.
He added: “Mass layoffs are causing ripple effects as companies scramble to close skills gaps within their organisations. We see this in waves. As tech giants lay off staff, we’re seeing employers lean on freelancers for help with tech-related skills.
“In 2023, we can expect to see greater demand for technology-related skills as layoffs continue and employers look to hire in-demand freelancers.”
Although the crypto and NFT-related hustles saw an increase in 2022, demand for these skills has now plummeted as the sector has gone from fastest growing in terms of new projects added to fastest falling .
Which hustles side pays the most?
According to the job site flexjobs, part-time work on an adjustable basis can pay up to $133 per hour.
The main areas recommended by the platform include product management, which involves moving an item or service from concept to production. He pays an average of about $62 per hour.
Project managers, who are tasked with tracking budgets, performance, and coordinating meetings, can also charge an average of $66 per hour.
However, more niche hustles are where the real money is.
Psychiatrists can charge around $133 per hour and corporate lawyers can rake in $63 per hour.
Meanwhile, the most in-demand Freelancer roles have six-figure salaries attached remotely, should side hustlers choose to take their gig part-time permanently.
Software engineers working from home can expect to earn around $70,000 at the start of their career. This tends to reach around $120,000 by the time they reach mid-career.
Freelance platform Upwork also pointed out that programmers in a variety of languages can expect to earn $60-70 per hour with an annual salary of around $120,000.
Their mobile and web development counterparts can expect to earn $100,000 and $90,000 respectively.
Meanwhile, business analysts with a degree in computer science, management information systems, or computer engineering can expect to make close to $130,000 by mid-career. They start with a slightly lower salary of about $53,000 on average.
This story was originally featured on Fortune.com
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