Americans are making more money from their side hustles than ever before — but fewer of them are actually doing it. That tension sits at the heart of a new wave of data painting a complicated picture of the gig economy in 2026.
A survey commissioned by LendingTree found that side hustlers are now pulling in an average of $1,242 per month — up from $1,215 last year and more than double the $473 monthly average recorded in 2022. The numbers sound like a success story. But participation has quietly collapsed. Only 33% of Americans report having a side hustle this year, down from 38% in 2025 and 44% in 2022. More people are earning more — there are just fewer of them doing it.
Fewer Hustlers, Higher Stakes
The survey, conducted by QuestionPro between March 3–6, 2026, polled 2,049 U.S. consumers ages 18 to 80 using a nonprobability-based sample designed to reflect the broader population. It’s one of the more comprehensive looks at the side hustle economy in recent memory — and what it reveals isn’t exactly a feel-good narrative.
The drop in participation is especially pronounced among younger Americans, the demographic that was supposed to be leading this whole movement. Among Gen Z adults ages 18 to 29, side hustle participation fell to 43% in 2026 — down sharply from 57% last year and 62% in 2022. Millennials ages 30 to 45 saw a similar slide, with participation dropping to 45% from 50% in 2025 and 55% four years ago. That’s not a blip. That’s a trend.
So what happened? Matt Schulz, LendingTree’s chief consumer finance analyst, offers a somewhat counterintuitive explanation. “Yes, it has never been easier or cheaper to start a side hustle,” he noted, “but it still typically costs money to start one. Inflation has squeezed budgets, leaving people with less income to devote to starting that small business.” In other words, the very economic pressures pushing people toward extra income are also making it harder to get started in the first place.
Why People Are Doing It — And What It’s Costing Them
For those who do have a side hustle, the motivations aren’t exactly aspirational. Among active side hustlers, 36% cite the current economic environment as a key reason for starting one, while 31% point to inflation and 26% say rising housing costs pushed them toward extra income. These aren’t people chasing passion projects. They’re people trying to keep the lights on.
That reality shows up in how the money gets spent. About 32% of side hustlers say they use the income to keep up with everyday expenses, while another 32% put it toward discretionary spending or savings. Roughly 25% rely on it specifically to cover essential bills. The Penny Hoarder’s own 2026 findings are even starker — 53% of respondents said they’d struggle to cover essential expenses without their side gig income at all.
And it’s not free money. Side hustlers are putting in real hours. About 32% spend five to ten hours per week on their extra work, while 24% devote eleven to fifteen hours weekly. That’s a meaningful chunk of someone’s life, on top of a primary job, often for income that doesn’t feel optional.
Burnout Is Real, and So Is the Math
Here’s the part nobody puts on the inspirational poster: 65% of side hustlers experience burnout, according to Penny Hoarder data. That’s nearly two-thirds of people supplementing their income while quietly running on fumes. More than 75% of respondents also said they somewhat or strongly agreed that rising costs and inflation have increased their reliance on side hustle income over the past twelve months. The hustle isn’t a choice for most of these people — it’s infrastructure.
What kinds of work are we talking about? Gig economy and on-demand work — food and grocery delivery, ridesharing, babysitting, pet sitting — remains the most common category at 29%. Freelance and professional services, including online consulting, tutoring, and fitness instructing, came in second at 26%. The median monthly earnings from side gigs, according to Penny Hoarder’s survey, sits at $1,275 per month, or roughly $15,000 annually — a number that sounds decent until you factor in the hours, the taxes, and the toll.
The Optimism Gap
Still, Americans haven’t given up on the idea. Despite falling participation rates, more than half of Americans — 55% — say they’re likely to start a side hustle within the next year, according to LendingTree’s report. Whether that optimism converts into action remains the open question. If recent trends are any indication, intention and follow-through aren’t moving in the same direction.
Other surveys complicate the picture further. Side Hustle Nation’s 2026 findings put the share of working Americans with a side hustle at 39% — translating to roughly 80 million people — a notably higher figure than LendingTree’s count, likely reflecting differences in how “side hustle” gets defined across surveys. Omni Calculator’s data, meanwhile, pegged 2025 adult participation at just 27%, with 34% of Gen Z and 31% of millennials participating. The exact numbers vary depending on who’s asking and how — but the directional story is consistent: participation is down, earnings are up, and the pressure driving both hasn’t gone anywhere.
That’s the uncomfortable bottom line. The side hustle economy is becoming leaner and, in some ways, more lucrative per participant — but it’s doing so in an environment where more people need it and fewer people can actually afford to start. The ones who make it work are earning more. The ones who can’t are just left with the bills.
