Canada's Second Income Economy: Side Hustles Surge

Canada's second income economy is becoming the country's financial backup plan. Nearly half of Canadians (47%) say they have tried to earn additional income in some way, according to the latest MNP Consumer Debt Index, the quarterly survey conducted by Ipsos. Selling goods online is the most popular tactic, with 21% listing items on platforms such as Facebook Marketplace, eBay, or Etsy. Beyond reselling, 11% learned new skills to improve future job prospects, 9% worked a second job, around one in eleven monetized a hobby or passion project, and 8% took on freelance or contract work. Smaller shares started a side business (5%), rented out property or personal assets (4%), used AI tools to generate income at a rate of about one in twenty, or drove for a rideshare or delivery service (3%).

The push toward the second income economy is being driven by wobbly career confidence. Over half of working Canadians (55%) say they worry about job mobility and career opportunities in today's labour market, a concern that climbs to 60% among working Gen Z and 59% among Millennials. Meanwhile, 42% of Canadians worry that artificial intelligence could negatively affect their employment or income, while 54% say that if they lost their job, they do not have enough savings to support themselves or their family for six months without borrowing or falling behind on bills. Trade uncertainty adds pressure: 24% of all Canadians, rising to 27% of working Canadians, worry that tariffs, trade disputes, or broader economic instability could hurt their job or income, as reported by Retail Insider.

Gen Z Is Leading the Second Income Economy

Younger Canadians are driving the second income economy hardest. Among Gen Z, 22% have learned new skills to enhance their career opportunities, 16% report working a second job, 10% operate a side business, 14% have monetized a hobby or passion project, and roughly one in eleven have used AI tools to generate income. Millennials lean toward resale: 34% have sold goods online, well above the national rate. For more coverage of this beat, see the Side Hustles topic page.

The generational split is stark. While the youngest workers stack income streams, 81% of Boomers say they have not tried to earn any extra income at all. The confidence gap runs just as deep: concern about job mobility mirrors the national average among working Gen X, but drops to just 26% among Boomers. The second income economy, in other words, belongs to those who feel they have the most to lose.

The Line Between Getting Ahead and Keeping Up

MNP president Grant Bazian cautions that there is a meaningful difference between "earning extra money to get ahead" and "depending on it to keep up" — a distinction that matters, because the quarterly poll shows how thin the margins are. The survey of 2,001 Canadian adults, fielded in early September, found that 44% of Canadians sit within two hundred dollars of being unable to meet their monthly financial obligations. The headline gauge of the second income economy era rose four points from the previous quarter to 95, though pollsters note confidence remains below historical levels.

When a job loss, a cut in hours, or a change in pay can quickly reshape what a household can afford, carrying debt feels far more precarious — especially since 36% of Canadians say they are not confident they could cope with losing employment or facing changes in wage or seasonal work without increasing their debt. The poll also found that 25% of workers are reluctant to leave their current job because of labour market uncertainty, while 20% would like to change jobs but do not feel financially secure enough to risk a period of lower or no income. A related GenZ NewZ look at the broader side-gig trend shows how quickly earning outside a day job has gone mainstream.

What This Means If You're Already Hustling

If you are part of the second income economy, the survey's message is practical rather than panicky: treat the extra earnings as a runway, not a guarantee. Channel the proceeds toward debt and a savings buffer, because the same data shows most workers doubt they could stay afloat for half a year without borrowing if their job vanished. A clear picture of income, expenses, and relief options — available from federally regulated insolvency professionals who offer free initial consultations — can separate a hustle that builds breathing room from one that only papers over a gap. Either way, the second income economy is not a passing trend: it is how a generation is hedging its future.