Making Ends Meet: Layoffs Driving Americans to Freelance

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Have you ever faced a layoff and wondered how you’d make ends meet? You’re not alone. As industries undergo rapid changes, many Americans are turning to freelancing and side hustles to earn a living. This latest study explores how recently laid-off professionals are handling these shifts, leveraging new skills, and adapting to a freelance-driven economy.

Based on a survey of 1,220 laid-off Americans, we offer insights into the income, job satisfaction, and long-term viability of post-layoff freelancing and side hustling. Let’s explore how the workforce is evolving in response to unprecedented challenges.

Key takeaways

44% of recently laid-off Americans have a side hustle.
Nearly 1 in 2 recently laid-off Americans plan to pursue freelancing full-time instead of returning to traditional employment.
Nearly 1 in 6 recently laid-off Americans (15%) report earning at least $2,000 per month from freelancing.
Almost half of recently laid-off Americans (47%) have learned to use AI to pursue freelancing or side hustle opportunities.
68% of those recently laid off believe they’ll always need a side hustle, and 67% depend on it to make ends meet.

01. Adapting to change

Preferred freelance gigs

Gen Z is the most likely to have a side hustle (49%), while Gen X is the most likely to be freelancing (24%). Millennials stood out as the most likely to be doing both, with 28% engaging in side hustles and freelancing.
Percentage of recently laid-off Americans who plan to freelance full-time instead of seeking employment, by generation:
- Gen Z (43%)
- Millennials (46%)
- Gen X (44%)
Percentage of recently laid-off Americans who are happier now freelancing than in their previous jobs, by generation:
- Gen Z (66%)
- Millennials (66%)
- Gen X (63%)
68% of those recently laid off believe they will always need a side hustle, and 67% depend on it to make ends meet.
75% of those recently laid off spend more time on their side hustle because of inflation.
65% of those recently laid off are now freelancing in industries different from their previous employment. Those who used to work in retail (90%), finance (79%), food and hospitality (78%), and health care (74%) were the most likely to say so.

02. Upskilling for survival

Learning new skills

Only 13% of recently laid-off workers earn more from freelancing than they did in their previous full-time jobs.
Gen Z (68%) are the most likely to have acquired new skills to pursue freelancing/side hustle opportunities.
Top 5 skills leading to higher monthly freelancing earnings ($2,000 or more):
- Using AI (53%)
- Data analysis (36%)
- Design software (28%)
- SEO (26%)
- Copywriting (26%)

03. Methodology

For this campaign, we surveyed 1,220 Americans who had been laid off within the past 12 months to explore whether they have taken up freelancing or side hustles. Of the respondents, 23% were Gen Z, 53% were millennials, 20% were Gen X, and 4% were baby boomers.

04. About SideHustles.com

At SideHustles.com, we’re here to help you navigate the gig economy. Our advice is practical and based on real experiences from people who’ve been in your shoes. You can trust our guides to get you started on the right foot. We also provide fair ratings for gig apps using unbiased, industry-specific rubrics.