More Americans are seeking side hustles as inflation continues to rise, with 40% already investing in their own business.
Two in five, or 40% of Americans, currently have a side hustle, a 2022 poll conducted by Zapier among 2,032 US adults shows.
The number is up from a 2020 Zapier poll of 2,001 Americans that showed one in three, or 34% of Americans had a side hustle.
The number of American’s beginning their new gigs is growing with more than 1 in 3, or 36% have started or plan to start their side hustle. The number is up from 1 in 4 Americans, or 24% in 2021.
Young adults are likely to start a side hustle with Gen Z and Millennials leading the way, according to Zapier.
A poll shows that 60% of the Gen Z population and 55% of Millennials have started a side gig or plan to start a side gig in 2022. Meanwhile, only 35% of the Gen X population and 13% of Boomers plan to start a side hustle.
The Gen Z and Millennial population are likely to already have side gigs in comparison to Boomers and Gen X
Millennials and Gen Z are also likely to lead the way in side hustles in 2022 in comparison to the Boomers and Gen X population
About 2 in 5 Americans make $5,000 or more a year, with 1 in 5 making $15,000 or more.
Nearly half of Americans with side hustles spend less than 10 hours on their gig.
The 2020 poll conducted by Zapier of 2,001 Americans showed that most of the side hustles reported at the time of the COVID-19 pandemic were new. Almost 700 survey participants already had a side hustle.
Two thirds, or 67 percent, of those surveyed started their side gig in the past three years, with 31 percent beginning in 2020.
Poll results showed 24 percent planned on jump starting on a new gig in 2021 – 27 percent were undecided.
The 46 percent with a side hustle said they started their gig hoping to make passive income to diversify their income, save towards a financial goal, or save for a purchase.
Some also said they started their gigs to develop new skills, find a new hobby, and test out a business idea.
The Zapier survey also found parents of minors were nearly twice as likely to have a side hustle in an attempt to make more money and learn skills.
The 46% of Americans with side hustles said they started their gigs to make more money and diversify their income
Some said they started their gigs to develop new skills, find a new hobby, and test out a business idea
More Americans sought to make more money amid the COVID-19 pandemic and as the current financial crisis continues, driven by concerns over high inflation.
The Federal Reserve announced on Wednesday that interest rates will increase by another 0.75 percent – after doing so last month. The 0.75 percent rate hike in June was the biggest increase since 1994.
The move brings the target rate to between 2.25 percent and 2.50 percent.
The Federal Reserve has raised interest rates four times in 2022 in an attempt to rein in inflation rates that haven’t been seen in 41 years.
Interest rates are the Fed’s key tool in trying to lower inflation from a four-decade high, and the central bank is pursuing an aggressive path of rate hikes after consumer prices jumped 9.1 percent in June from a year ago.
The raise will likely impact consumer and business loans, and loan rates for homes, cars, and credit cards.
It represents one of the fastest-ever gear changes in U.S. monetary policy – just over four months ago the policy rate was near zero and the Fed was buying billions of dollars of bonds each month to help the economy recover from the COVID-19 pandemic.
Feral interest rates were raised by 0.75 percent last month, the highest increase since 1994
Inflation hit 9.1% in June, and the Fed is trying to combat rising prices with higher interest rates
But while there has been little progress registered yet in the inflation fight, signs of economic stress are accumulating – and raising the stakes for Fed officials as they weigh just how much tighter monetary policy needs to be to slow price increases against the risk that going too far could trigger a recession.
As the Fed’s impact on the economy becomes more apparent, the issue now is whether it is at risk of overdoing it.
Parts of the U.S. bond market are signaling an increased likelihood of recession, with yields on 2-year U.S.
Treasury notes now higher than they are for 10-year Treasuries, a possible sign of lost faith in near-term economic growth and reflecting a possibility the Fed may be forced to cut rates within a relatively short span of time.