Rising Living Costs Drive 72% of U.S. Workers to Seek Side Income
By John Nada·Feb 21, 2026·4 min read
A recent survey reveals that 72% of U.S. workers now depend on side incomes due to rising living costs, shifting the landscape of employment and financial security.
As living expenses continue to rise, a significant 72% of U.S. workers now rely on secondary sources of income, according to a MyPerfectResume survey. This marks a sharp increase of 71% from the previous year, highlighting the financial strain felt by many Americans. For 26% of those surveyed, side jobs are not just a way to save but a necessity to cover essential living costs.
Inflation is a major driver of this trend, with nearly 38% of respondents indicating that soaring prices have intensified their need for additional income. The rising costs of groceries, rent, and basic needs are outpacing wage growth, leaving many workers feeling as though their paychecks aren’t stretching far enough. Over the past five years, the cost of living has increased significantly while wages simply haven’t kept up, creating a gap that many Americans feel they must bridge through side work. This situation illustrates a shift in perspective about side hustles, which have transitioned from optional supplemental income to vital financial lifelines for many.
The survey found that respondents are engaging in various forms of side work, including freelance or gig jobs (14%), investments (14%), owning side businesses (9%), and passive income streams like rent (9%). Additionally, 4% of respondents reported taking on a second job with another employer. However, while 52% of those with side gigs report feeling more secure, there are drawbacks. The pursuit of additional income can lead to reduced downtime, which may strain personal relationships and affect primary job performance. Despite the extra financial cushion, the toll of juggling multiple roles may lead some to reconsider the balance between side hustles and their main employment.
This growing reliance on alternative income streams reflects broader implications for the economy and labor market. As more Americans seek additional income to cope with inflation, the dynamics of employment and compensation may need to adapt. Workers are increasingly weighing the benefits of extra income against the risks of burnout and job neglect. The survey indicates that while 68% of respondents say their side work has never interfered with ambition or availability at their main job, the reality is that juggling multiple responsibilities can be overwhelming.
Moreover, the economic uncertainty that has characterized recent years, coupled with concerns about the potential impact of artificial intelligence on job security, adds another layer of complexity. As technology continues to evolve, many fear that their primary careers could be at risk, prompting them to explore side income opportunities as a safeguard against potential job loss.
The trend of side hustles underscores a significant shift in how Americans view work and stability. As traditional employment structures face challenges, the ability to secure a stable financial future may hinge on the flexibility and availability of these secondary income opportunities. The survey's findings reflect a changing landscape where side hustles are not merely an option but a necessity for many households.
The implications for employers are significant. As the workforce increasingly turns to side hustles for additional income, businesses may need to rethink their compensation strategies and benefits packages to retain talent. The current environment suggests that employees may prioritize roles that offer greater financial security and work-life balance, pushing employers to create more attractive offers that can compete with the allure of side income.
Looking ahead, the continued rise in living costs may further entrench this trend, prompting more Americans to seek out diverse income sources. As they navigate these challenges, the conversation around work-life balance, job satisfaction, and financial security will likely evolve. With economic uncertainty on the horizon, how businesses respond to these changes could define the future of work in America.
In light of these trends, it is evident that the landscape of work is shifting. Many workers are finding that their primary jobs alone are no longer sufficient to meet their financial needs, leading to an increase in the pursuit of secondary incomes. This evolution in the workforce could signal the need for a reevaluation of how work is structured, compensated, and valued in society, ultimately leading to a more flexible and adaptive labor market that better accommodates the realities faced by today’s workers.