New LendingTree side hustle survey: Gen Z hustles less, earns more

Fewer Americans are picking up extra work, and Gen Z is leading the retreat, according to a new LendingTree side hustle survey. Just a third of Americans (33%) now have a side hustle, down from 38% last year and 44% four years earlier. The drop is steepest among 18-to-29-year-olds: 43% of Gen Zers hustle this year, down from 57% a year earlier and 62% in 2022. Yet the side hustlers who remain are earning more than ever, pulling in a record $1,242 a month on average.

LendingTree chief consumer finance analyst Matt Schulz says the paradox makes sense once you look at household budgets. Starting a side hustle usually costs money up front, and inflation has left people with less spare cash to seed one, he said in the LendingTree side hustle survey report. High interest rates and tight lending have made others think twice about borrowing to fund a business. And the economy has split in two: plenty of Americans are struggling and need every dollar they can find, while others are thriving and feel less pressure to add a second job. The result is fewer hustlers, but higher average earnings among those who stick with it.

The pay keeps climbing while the crowd thins

The monthly average is up slightly from last year and far above the $473 reported four years ago, LendingTree found. That kind of money matters because the income is rarely spare change: 61% said life would be unaffordable without the extra income, while 80% said the hustle improves their quality of life and 49% said it builds long-term financial security. Bankrate's separate research put the median side hustle payout at just $200 a month, a reminder that a few big earners pull the average up, according to Monarch's review of four major surveys.

The biggest reason people start is keeping up with prices. About 32% said they hustle to cover cost-of-living expenses, 25% use the cash for primary bills, and others save it or spend it on extras, according to the LendingTree side hustle survey. The economy itself (36%) and inflation (31%) were the most common triggers named. Schulz cautions that leaning on gig income carries risk, since the money arrives unevenly. "Relying on side hustles can be risky, in large part because of how unpredictable side hustle income can be," he said. "Even the most successful side hustles will have highs and lows, and that volatility creates real challenges."

Delivery apps and freelance gigs still top the list

Gig and on-demand work remains the most common lane at 29%, covering food and grocery delivery, ride sharing, babysitting and pet sitting. Freelance and professional services come next at 26%, from online freelancing and consulting to tutoring and fitness coaching, followed by creative and media work at 23%, including e-commerce resale. Gray Television stations, reporting on the LendingTree side hustle survey, found food and grocery delivery and online freelancing were the single most popular hustles named. About 14% of hustlers do part-time or seasonal work and 13% clean houses, while roughly one in eight makes and sells their own goods.

The hours are modest but real: 24% of side hustlers put in 11 to 15 hours a week, and more than a third dedicate five to ten. One Gray Television report followed a golf coach who lists lessons on the Teachme.to platform and books students like Mateo Frances, who chose him after seeing strong ratings. "The main thing to understand about a side hustle is that it takes a lot of work," Schulz said. "This isn't free money. This isn't just a switch that you flip and all of a sudden, you're bringing in money."

Even as participation cools, interest has not. More than half of Americans (55%) said they are likely to start a side hustle within the next year, the survey found, and 69% of current hustlers said they would rather rely on one main source of income if they could. Gen Z, the generation most likely to have hustled in the earlier survey, is now the one walking away fastest.