Will Generation Z become Generation Side Hustle?
Newly-reveled data compiled by Hostinger suggests that Generation Z is struggling to pay their bills and that a handful of states are incredibly hostile towards young workers whose incomes barely exceed the most basic living costs.
Apparently tired of living paycheck to paycheck (and likely drowning in debt), Generation Z’s interest in side hustling has reportedly surged in recent months.
Young Workers Are Often Low-Paid Workers, and Generation Z Isn’t Breaking The Mold
The early stages of one’s career generally leave workers craving more money, as earning power typically increases as one gains experience, builds their resume, and enhances their skill set. Rampant inflation and a hyper-competitive market for well-paying jobs (or, at least, the jobs that Gen Z-ers tend to value) are further suppressing earning power for workers born between the late 1990s and early 2010s.
The Hostinger data reveals that the average American Gen Z-er earns only $1,600 more per year than their basic cost of living. Yet, we know that life costs more than the basic cost of living. Emergencies, dining out, essential travel, and even minimal entertainment are almost certainly pushing Gen Z-ers beyond their $1,600 cushion. This fact indicates that debt is likely the norm for the youngest members of the workforce.
Turning to side work is a logical conclusion, especially for those not anticipating a substantial raise. However, any worker struggling to make ends meet must take a long, hard look at where they live and how much it costs to live there.
Ten States Are Unusually Expensive for Generation Z
Data suggests that, despite uncontrollable taxes like inflation, the most cash-strapped members of Generation Z need to make life easier for themselves. Young people who work in states where the cost of living is greater than the average Generation Z-ers income find themselves not just living paycheck to paycheck but falling behind. The numbers don’t add up for members of Generation Z living in:
Living wage: $45,739
Average wage for workers aged 25 and under: $39,366
Living wage: $33,093
Average wage for workers aged 25 and under: $27,050
Living wage: $32,573
Average wage for workers aged 25 and under: $27,906
Living wage: $33,592
Average wage for workers aged 25 and under: $29,032
Living wage: $32,136
Average wage for workers aged 25 and under: $27,814
Living wage: $36,338
Average wage for workers aged 25 and under: $32,671
Living wage: $37,773
Average wage for workers aged 25 and under: $34,424
Living wage: $33,800
Average wage for workers aged 25 and under: $30,939
Living wage: $40,581
Average wage for workers aged 25 and under: $37,990
Living wage: $33,946
Average wage for workers aged 25 and under: $32,413
Note that a “living wage” is the wage at which someone can theoretically survive without seeking public financial assistance. If someone were to cover their most essential living costs (energy, housing, transportation, food) without spending much more, they would be making a living wage.
Why Are These States So Hostile to Generation Z?
These states share the commonality that young workers are not making enough, on average, to cover their costs of living. That said, could any two states be more different than New York and Mississippi? Or Illinois and New Mexico?
Several of these states lack an abundance of high-paying jobs when compared with most other states in America. Mississippi, Louisiana, Alabama, and West Virginia certainly fit this billing.
In other states, such as New York and Oregon, the cost of living is higher than the national average. This fact alone puts young, low-earning individuals at a financial disadvantage.
While a state like Montana continues to see annual population growth in locales like Bozeman and Big Sky, many rural areas remain with relatively limited employment opportunities and a shortage of high-paying jobs, as evidenced by a modest average wage for Gen Z-ers. South Carolina finds itself in a similar situation.
New Mexico has also seen regional population increases as transplants from California and the Pacific Northwest migrate Eastward, but there are many areas of intense poverty throughout the state.
To thrive, Gen Z-ers may relocate to states where opportunity is abundant, but the cost of living is not exorbitant. The Hostinger data highlights New Hampshire, Alaska, Nevada, Utah, and Washington as the states with the most Gen Z-friendly wage and living conditions.
Cash-Strapped Americans Are Turning to The Internet and Gig Economy for Extra Cash
Whether or not Gen Z eventually decides to move, the short-term plan is to side hustle and side hustle hard.
Hostinger found that Google searches for ‘work from home jobs’ increased by 130% in the measured period, while searches for ‘what’s a good side hustle’ skyrocketed by 400%. These figures aren’t just Generation Z’s searches for supplementary income opportunities but searches across all age ranges. Still, many young workers under great financial pressure have realized that increasing their income is the only way to find relief.
Some of the gigs that these workers are embracing include:
- Ridesharing and food delivery
- Pet-sitting
- Writing
- Editing
- Graphic design
These are fields in which opportunity is abundant, entry-level offers are common, and one does not necessarily need years of experience so long as they have requisite skill and determination to learn.
Generation Side Hustle has a ring to it, and grocery prices don’t appear to be declining soon. So, for those living paycheck to paycheck (whether you’re 20 or 60), find a state that makes financial sense, and don’t be afraid of seeking supplementary income. The data says you’re not alone, but there’s plenty of opportunity if you seek it out.
