Inflation is rising and the economy remains uncertain — but rather than slice spending, nearly half of employed U.S. consumers are earning supplemental income on the side, Bloomberg reported March 27.
The publication examined a recent survey of 4,125 consumers from LendingClub Corp. and Pyments.com. According to their estimate, consumers may be amassing $50 billion per month beyond their paychecks — including bonuses, commissions, tips and gratuities — much of which is undeclared to tax authorities.
There are several popular methods of generating additional income: selling used items on sites like eBay, selling artisanal products, completing informal tasks for pay or receiving returns on gambling.
For some low-income individuals, that extra cash is essential to make ends meet. But high-earners are taking on side hustles, too; individuals earning more than six figures are more likely to have a growing supplemental income, according to the report.
"A vast majority of consumers became used to working from home during the pandemic, and after returning to work, many kept flexible hours and turned to alternative income streams to expand their earning potential beyond a 9-to-5 job," said Anuj Nayar, LendingClub's financial health officer.