Side hustle spike: New England workers now make almost $12K a year working a second job

BOSTON — More workers across New England are taking on a second job.

Newly released data from Bankrate shows 35% of workers in the Northeast – more than 1 in 3 – now have a side hustle. Many use the extra pay to supplement income from their primary job.

New England is not alone. Bankrate says the number of Americans working a side gig has nearly doubled since 2017, especially in the wake of high inflation.

“Back then, only 19% had a side hustle,” said Bankrate’s Ted Rossman. “Now it’s 36%. This says a lot about the state of the economy.”

Bankrate says the average side hustle now pays an average of $976 a month in the Northeast, or almost $12,000 a year, the highest in the country.

Secondary jobs run the gamut. Popular side hustles include ridesharing, food delivery, pet sitting, and dog walking. But many people are also dipping into their expertise to offer, for example, freelance writing and graphic design services to online clients outside of their regular jobs.

While pay is important, Bankrate’s recent study finds it’s more of a perk for some. Younger workers are more likely to use a part-time second gig to get paid to explore an area of interest, perform an activity they like, or grow a skillset.

“I think that’s actually one of the real glass-half-full sides of this,” Rossman says. “If you can make some extra money and pursue a passion, who knows? Maybe it turns into your next big thing.”

Just be mindful of what you put in before you collect a paycheck, Rossman adds, warning it’s possible to lose money if you’re not careful.

“It’s important to consider the total cost,” he says. “If you’re buying a lot of inventory before you know how much you can sell, you might get stuck with the excess.”

And don’t forget taxes. While traditional full-time employees typically see their taxes automatically deducted from their paychecks, side gig workers will have to self-report, file, and pay taxes on any earnings over $400, according to the IRS.

“A lot of these peer-to-peer services like Venmo and PayPal and the like are going to have much stricter tax reporting rules starting next year,” Rossman says. “If you’re getting paid by Venmo or a similar service… there’s going to be a paper trail.”

Download the FREE Boston 25 News app for breaking news alerts.

Follow Boston 25 News on Facebook and Twitter. | Watch Boston 25 News NOW

©2024 Cox Media Group