The side hustle economy is cooling down faster than anyone expected. According to fresh data from Bankrate, only 27% of Americans now have a side hustle—the lowest percentage since 2017 and a dramatic drop from 36% in 2024.
Here’s why millions are abandoning their extra income streams.
The Real Reasons Behind the Side Hustle Decline
1. Stronger Job Market Reduces Desperation
The primary driver is simple: people don’t need side hustles as desperately when their main jobs pay better. A strengthening labor market means higher wages and more job security, reducing the financial pressure that drove the side hustle boom during economic uncertainty.
2. Cooling Inflation Makes Life More Affordable
Inflation rates have stabilized, making daily expenses more manageable on a single income. When groceries, gas, and housing costs aren’t skyrocketing every month, the urgent need for extra cash diminishes significantly.
3. Side Hustle Earnings Are Actually Dropping
The average side hustler now earns $885 per month in 2025, down from $891 in 2024. When the financial reward decreases while time investment stays the same, many people decide the math doesn’t work anymore.
4. Burnout From Multiple Income Streams
65% of current side hustlers say they’d prefer one main income source if it paid enough. The constant juggling of multiple jobs, deadlines, and responsibilities has left many Americans exhausted and seeking simplicity.
5. Platform Saturation and Increased Competition
Popular side hustle platforms like Uber, DoorDash, and freelance sites now have more workers competing for the same opportunities, driving down hourly rates and making it harder to earn meaningful income.
What This Means for Your Financial Strategy
The decline doesn’t mean side hustles are dead—it means the landscape is evolving. 61% of current side hustlers still say their life would be unaffordable without that extra income, proving these income streams remain critical for millions of Americans.
If you’re considering a side hustle in 2025, focus on higher-value, specialized services rather than competing in oversaturated markets. The successful side hustlers who remain are those providing unique skills that can’t be easily replicated.
