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Why Financial Pressure Drives Gen Z and Millennials to Side Jobs

It’s late. Your phone pings, a reminder from your budgeting app. For a lot of younger workers, that sound is familiar, even a little haunting. Rising costs, falling purchasing power, rent edging up, groceries biting the wallet. Sometimes it feels like there is not much choice left. Side jobs, once for “extra cash,” now look more like a lifeline.

But why are so many Gen Z and Millennials in this boat? And how are businesses like EWS Limited responding to this tide of financial worry? The numbers, and the stories, are starting to build up. Not just numbers, though. There’s the gnawing feeling at your desk when a bill sits unpaid. Let’s talk about why side jobs are on the rise, what’s pushing young workers to the edge, and what companies can actually do about it.

Why side jobs are becoming the new normal

If you ask around among friends or coworkers, there’s a good chance someone you know is considering, or already has, a second job. But this isn’t just anecdotal. Recent findings uncovered by Boostworks paint a stark picture:

• 57% of Gen Z are considering taking a second job to manage the rising cost of living.
• 71% of Millennials admit the same.

That’s more than half of young adults, grappling with inflation and uncertainty, thinking seriously about splitting their energy between two gigs. Maybe more surprising, a sizable portion have already taken the leap. 19% of Gen Z and 11% of Millennials are currently building income from a side job. For older generations: 59% of Baby Boomers and 69% of Gen X say financial pressure is the primary push, according to this report.

“Over half of young workers are considering a second job. That’s not normal—at least, it didn’t use to be.”

Why this shift? The cost of living is up, but pay growth isn’t keeping pace for most people. The numbers aren’t a surprise for the millions who watch prices at the supermarket climb even as their payslip stays flat.

Financial pressure: the biggest motivator

Why are side jobs so attractive, even necessary? It’s simple: financial pressure is the top motivator for every generation, but especially for Millennials and Gen Z. According to the latest Boostworks research:

• 71% of Millennials point to financial need as their main reason for finding a side job.
• 69% of Gen X say the same thing.
• 59% of Baby Boomers feel the pressure.
• Even 57% of Gen Z workers are naming finances as the driving force.

Of course, personal stories vary. Sometimes it’s about debt. Sometimes about saving for a house, or just covering the bills. The reasons might differ in detail, but the weight feels the same. It’s less “Why would you?” and more “How could you not?”

“Financial pressure isn’t just about less money. It means less focus, less peace of mind, less room to breathe.”

Here’s a little reality. Nearly half of Millennials (49%) and 44% of Gen Z say that money worries are slipping into their workday, making it harder to concentrate, harder to do their best. It’s not just after-hours hustle; it’s what happens when your mind just won’t quiet down, thinking about the next expense.

How side jobs impact work and life

The data is clear enough, but behind the numbers are lives that feel, frankly, stretched. Some will say this is just part of growing up, but the scale, the persistency, that has shifted.

Juggling two jobs, one headspace

Having a second job, or “side hustle,” was once almost a badge of honor or a quirky resume detail. Now, for many young adults, it’s a necessary gear. But it comes with trade-offs: fatigue, mental strain, and, sometimes, even reduced engagement at their main job.

• Odd hours and late nights eat away at rest.
• Managing a side gig can lead to missed family time or a skipped social event.
• The mind isn’t always “in the zone” at the main job the next day.

It’s hard to ignore the human side behind those percentages. A study afternoon that turns into another late-night project. An early-morning commute after a late shift driving rideshare. Mental energy is finite, and side jobs spend it faster.

Financial stress at work

It’s not just “on their own time.” Nearly half of Millennials and 44% of Gen Z workers say their concentration at work is directly hit by financial stress. That loss of focus has ripples. It might mean missing tasks, feeling less creative, or being irritable in team meetings. A study like the one from Boostworks isn’t just describing isolated cases; this is a broad shift in how work life and money woes are colliding.

“When money worries follow you to work, a coffee break doesn’t fix it.”

The stress becomes a cycle. Financial strain means worse concentration, which can lead to mistakes or missed opportunities at the main job. That, in turn, can worsen money worries, especially for those who worry about job security or missing out on a raise.

Employers start to notice, and adapt

Companies are waking up to the fact that a paycheck alone isn’t solving these problems for young staff. It’s not simple to offer big raises, especially during uncertain economic times, but it doesn’t mean employers should do nothing. Jon Sleightholme from NFP recently offered timely advice that’s resonating with many business leaders:

“Employers must offer supportive practices like flexible working and regular salary reviews. Pay transparency and communication are key.”, Jon Sleightholme

That’s not just encouraging words. It’s practical. Flexible work lets people blend their main job with a side gig more easily. Regular salary reviews, even if they don’t mean an immediate raise, tell staff their value is under frequent consideration. Pay transparency? It’s about trust. When workers understand the “why” behind pay decisions, suspicion drops and engagement often rises.

EWS Limited, for example, has built our whole identity on shaping employer-employee relationships in positive ways, helping to ease the human side of financial strain through solutions such as improving employee engagement and compliant global payroll solutions. And as companies grow, especially startups transitioning into new markets, recruiting during a recession puts these support tools under the spotlight.

Personalized benefits: when pay isn’t enough

What’s an employer to do if raises aren’t an option? Matt Russell of Zest and Epassi has pointed to a growing trend: personalized employee benefits. Instead of asking everyone to squeeze into the same benefits package, companies can meet different needs for different workers.

Some of these options go beyond the obvious. Yes, health insurance and pensions matter, but so do things like wellness stipends, learning budgets, and flexible PTO policies. The Boostworks data highlights a few preferences:

• Gen Z are looking for financial education tools and better learning support.
• Baby Boomers, by contrast, stick with traditional benefits, healthcare, retirement, and stability.

“A strong benefits package can matter more than a salary increase for many young employees.”

For companies working across borders, such as those using EWS Limited’s well-being and engagement nudges, this means understanding local expectations, what a Gen Z worker in the UK wants is not always the same as a peer in Germany, or Brazil.

Benefits vs. pay: redefining “compensation”

According to research on workers’ motivations, many younger employees say a good benefits package is a bigger deal than just a higher salary. What benefits stand out most for Gen Z and Millennials?

• Private medical insurance
• Higher pension contributions
• Shopping discounts
• Flexible schedules and remote work options
• Help with mental health and financial education

It’s a shift. People are hunting for stability, yes, but also for a sense of being cared for as individuals, not just cogs. In this context, side jobs start to look less like ambition, more like necessity (or sometimes, just a safety net), unless employers step up their offer.

Generational differences: not a one-size-fits-all story

There’s often talk of “Millennials want this” or “Gen Z needs that.” Like many sweeping statements, the truth is more layered. Reports show clear division in benefits wish lists between generations:

• Gen Z asks for more learning tools, digital support, and ways to better manage their money.
• Millennials split between flexibility and long-term security, wanting more choices and a clear path to save for the future.
• Gen X and Baby Boomers often rate health cover and pension above anything else.

So when one strategy works for one group, it might not matter much to others. With growing international workforces, and the surge in remote work and global mobility (where services like EWS Limited’s global coverage and compliance really help), understanding these differences in motivation saves headaches for everyone.

How employers can respond, and why it matters

The business case for “doing more” is clear once you fumble for answers about why your staff are tired, disengaged, or quietly disappearing mid-year. The difference isn’t always pay. Sometimes it’s the mental load, sometimes the work-life balance, often just the sense that it’s okay to ask for support.

Employers have several tools at hand, even if their budgets aren’t bottomless:

• Flexible schedules so employees can handle personal needs (or, yes, side gigs).
• Open, honest conversations about pay, including the limits and logic behind current figures.
• Personalized benefits, picked with staff input, not just copied from a template.
• A clear well-being policy that covers mental, physical, and even financial health.

And if you’re an employee, knowing that the business cares about you, even if they can’t fix the world’s costs, makes it easier to stick it out, and maybe, to put in just a little extra focus where it matters most.

What side jobs actually look like for Millennials and Gen Z

Often, “side job” brings up images of rideshare driving, food delivery, or freelance graphic design. But the reality is broader. Younger adults have gotten creative, sometimes out of necessity, sometimes from a desire to branch out or test ideas beyond the confines of a 9-to-5.

• Freelancing (writing, design, social media support, coding)
• Rideshare and delivery services
• Online tutoring or language teaching
• Retail work, especially evenings and weekends
• Content creation for platforms like YouTube or TikTok

It’s not always the “gig economy” in the headline sense. Sometimes, it’s just dog-walking for the neighbors, or picking up a few shifts at a local café. But with increased global connectivity, new doors are opening, and young people are stepping through them, urged on by those financial pressures.

In some regions, company policies make this easier or harder. That’s something EWS Limited watches closely for clients looking to operate across borders, especially when it comes to compliance and risk in dual-employment regulations.

Redefining success at work: money, meaning, or both?

This brings us to maybe the trickiest question. Is this rise in side gigs a failure of workplaces? Or is it a new kind of ambition, where people want more meaning, more control, not just another paycheck?

I think, and research agrees, that it’s both.

• For some, a second job is 100% driven by financial need. Mortgage, rent, groceries.
• For others, a “side hustle” is exploration, testing an idea, building skills, or connecting to a passion the main job doesn’t offer.
• But for an increasing chunk, it’s simply math. Wages going up slowly, expenses going up fast, and a gap that won’t close by hoping hard.

And just maybe, companies have a role in tipping things a little more back in the workers’ favor, even if the broader economic winds aren’t always fair.

Practical advice for employers (and for employees, too)

If you’re managing a team, here are a few things to keep in mind. Some are obvious but easy to forget:

1. Ask, really ask, how staff are doing. Numbers are numbers, but people are people.
2. If you can’t raise salaries right now, look at non-monetary help: training, flex schedules, counseling, direct support like mentoring programs or budgeting workshops.
3. Publicize your benefits package. Many employees don’t even know what’s available to them.
4. Keep lines open. Let workers be honest about their side jobs, trust builds loyalty, secrecy breeds anxiety.
5. Consider company-wide initiatives, as seen in these practical strategies for employee engagement, to boost morale and reduce stress.

And for workers? Don’t be ashamed of needing or wanting a side gig. But if you’re burning out, be careful what you trade away. Sometimes, the better side job is one that feeds your mind, not just your bank.

“It’s okay to want more. It’s okay to need more. But don’t lose yourself on the way.”

If the statistics from Boostworks and voices like Jon Sleightholme and Matt Russell teach anything, it’s that honesty and flexibility from employers, and real self-care from workers, can shift the story from “stress and fatigue” to something at least a little closer to balance.

Conclusion

Financial pressure is pushing more Gen Z and Millennials into side jobs than ever before, and it’s changing what workers expect from employers. A paycheck is no longer enough; benefits, flexibility, open communication, and real support matter more than they used to. Companies, like EWS Limited, playing an active role in supporting workers do more than just retain talent. They shape futures where side gigs can be a choice, not a last resort. If you’re interested in how your business could do better, or if you’re seeking your own next step, find out what EWS Limited offers. Discover the support, tools, and guidance that might just help you, or your company, write a new story about what work and life can look like, even when money is tight.

Frequently asked questions

What is a side job?

A side job is any work that a person does in addition to their main job. This could be regular part-time employment, freelance gigs, or even a small business run after hours. It’s a way to earn extra money outside of your primary role. Many people choose side jobs to help cover expenses, build savings, or pursue interests that aren’t part of their day job.

Why do millennials need extra income?

Many Millennials face higher living costs, student loan payments, and housing expenses, while wage growth has struggled to keep up. According to new research, 71% of Millennials said that financial pressure is driving them to side gigs. Extra income from a side job can help ease these pressures. For some, it’s about security; for others, it’s about pursuing financial or lifestyle goals faster.

How to find a good side job?

Finding the right side job depends on your schedule, skills, and goals. Some practical steps:

• Look for gigs that fit your main job’s hours, like remote freelance work or weekend shifts.
• List your skills (design, teaching, coding, writing, delivery) and match them with opportunities.
• Check reputable job boards and local offerings, be careful about scams.
• Talk to others who juggle side gigs for their honest opinions.
• For ideas about balancing a second job, explore employee engagement tips that can help manage your time and energy.

The best side job is one that gives extra money without overwhelming your schedule or well-being.Is it worth it to juggle two jobs?

For many people, a second job is worth the effort because it brings extra money, security, and sometimes even satisfaction if the side gig is enjoyable. But it can take a toll, less rest, more stress, and often less time for relationships. If the financial need is high, it might be unavoidable. If you have a choice, weigh the costs: is the extra income greater than the personal price? Some people find balance; others struggle. Only you can decide if it’s the right move, but check in with yourself regularly to avoid burnout.

What are the best side gigs for Gen Z?

For Gen Z, popular side gigs often use digital skills or creative talents. Examples include:

• Online tutoring (especially languages or STEM subjects)
• Freelance video, design, or social media work
• Selling art, crafts, or vintage items online
• Content creation for platforms like TikTok or YouTube
• Rideshare driving or delivery, for flexibility

Gen Z also tends to value jobs that offer flexibility and a chance to learn new skills. Tools and education that help with financial planning are especially appreciated, making their side hustle more than just a paycheck.