Washington D.C. – The number of Americans engaged in side hustles has fallen to its lowest point since 2017, with only 27% of U.S. workers reporting a secondary income stream in 2025. This marks a significant 9-percentage-point drop from 36% just last year, according to a recent survey by Bankrate. The decline suggests a shift in economic necessity for many workers.
The primary drivers behind this slowdown appear to be a robust job market and an improvement in real wages. The U.S. labor market has shown resilience, with consistent job growth and a low unemployment rate hovering around 4% to 4.2% in 2025. This strong employment environment has reduced the immediate need for supplemental income for many.
Furthermore, wage growth has consistently outpaced inflation since February 2024, leading to increased purchasing power for American workers. As one social media post observed, > "The job market’s been strong, wages finally beat inflation, and apparently people would rather not DoorDash after a 9-hour Zoom-a-thon." This indicates a reduced financial pressure that previously compelled many into side gigs.
However, economists and market analysts are closely watching for potential shifts that could reverse this trend. While recent inflation figures show moderation, some forecasts suggest an uptick in 2025. Deloitte projects the Consumer Price Index (CPI) to average 2.9% in 2025 and potentially accelerate to 3.2% in 2026.
A significant factor contributing to this projected inflation increase is the reintroduction of tariffs. Experts like those at Capital Economics and Vanguard Group estimate that new tariff policies could push the U.S. inflation rate to around 4% by the end of 2025. The Yale Budget Lab estimates that the average U.S. household could face an additional $2,500 in costs in 2025 due to these tariffs, impacting everything from consumer goods like shoes to shampoo.
Despite the current slowdown, the economic landscape remains dynamic. As one commentator noted, > "With inflation climbing and Trump’s new tariffs making everything from shoes to shampoo pricier, side hustles could be staging a comeback." The long-term necessity for additional income streams may re-emerge if economic pressures intensify, potentially leading to a resurgence in side hustle participation.