The crumbling Biden economy is forcing even more people to look for side jobs

Photo by Gage Skidmore, CC BY-SA 2.0, via Flickr, https://creativecommons.org/licenses/by-sa/2.0/

The rising cost of living is making it harder for Americans to make ends meet.

Biden inflation means that your old salary is just not enough to maintain your standard of living.

Now this study shows just how many people are resorting to new side hassles to cope with the rising cost of living.

Side hustles soar thanks to Bidenomics

A recent survey of 1,300 new business owners conducted by the payroll firm Gusto found some interesting data.

According to the survey, the percentage of small businesses launched last year by new owners who also worked for someone else almost doubled from 2022.

The share of new business owners who worked full-time or part-time for another employer while starting a business of their own went from 27% in 2022 to an incredible 44% in 2023.

Liz Wilke, principal economist at Gusto, told FOX Business that when she saw the results, she thought, “Wow, that is a really big jump… and when you have a big jump like that, it’s usually not just one thing.”

Wilke said she believes many factors contributed to the massive uptick, including the rise in remote and hybrid work that has given workers more flexibility with their schedules.

She also said other things led to the jump: “One is 2023 sort of saw the crest of inflation after a full year-and-a-half to two years of really hard inflation – things are still quite expensive. That, coupled with the fact that the economic outlook really feels a little wobbly to some people right now.”

One surprising revelation is that many people have chosen to keep their existing jobs while starting a business on the side.

According to Wilke, when peoples’ budgets are tighter, side hustles give them an opportunity to slow-roll a business and take their time developing products, while also building up their savings before they transition to full-time business owners.

The survey revealed that many startup founders did quit their jobs, but 49% of respondents who started their business as a side gig are still working for their old company, too.

AI may also play a role

The Gusto survey also asked participants about AI, which came into the spotlight in late 2022 after the release of ChatGPT.

Approximately three-quarters of the companies surveyed said they were using some AI tools, mostly for marketing purposes to build websites, create content, and more.

AI tools can cut time on labor-intensive tasks, and Wilke said that this technology may also be playing a big role in the increase of side hustles. 

“I don’t think it’s accounting for all of the jump. But I wouldn’t be surprised if side hustlers weren’t really using some generative AI tools to cut a lot of the time commitment that’s required at the very start of a business when they’re really just trying to get their brand out, get a reputation, build some revenue streams,” she said. 

Informed American will keep you up-to-date on any developments to this ongoing story.