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Side hustles become financial lifeline for ‘one in five Brits’

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The findings, from a 2025 jobs report by HR platform Employment Hero, reveal a significant change in working patterns across the country.

Drawing on a YouGov survey of more than 3,600 UK workers, alongside analysis from over 350,000 small businesses and two million employees, the report provides one of the most detailed snapshots yet of how employees are adapting to a challenging economic climate.

Younger workers bearing the brunt

The report found that 21 percent of UK employees are now holding multiple jobs. Among those aged under 27, often known as Generation Z, the rate is much higher at 42 percent. For many, side hustles have become a necessity rather than a passion project, as rising prices and stagnant wages erode financial security. It’s not limited to those in part-time or casual roles as nearly one in five full-time employees now holds a second job.

Official figures show inflation remains well above the Bank of England’s two percent target, with food, housing and energy costs still putting pressure on household budgets.

Confidence in the job market is waning

Almost six in 10 of those surveyed say they believe the labour market is worsening, and just over half are not confident they could find a new job within three months if they needed to. Employment growth has slowed dramatically over the past year, from around eight percent in 2024 to just over three percent by mid-2025.

These findings echo recent data from the Office for National Statistics, which show a decline in job vacancies and a steady rise in unemployment since late 2024. Many employees now see holding multiple jobs or taking on extra hours as the only way to cope with rising bills.

The report also suggests that job security has become the top priority for workers in 2025. More than half of those surveyed said they are “job-hugging”, holding on to their current roles despite limited prospects for advancement. Many are reluctant to move jobs in the current climate, even if they feel undervalued or underpaid, for fear of struggling to secure another position.

All about ‘survival’

Kevin Fitzgerald, UK managing director at Employment Hero, said having a second income stream was increasingly becoming the norm.

“Our data shows how the side hustle has transformed from a choice into a necessity,” he said. “One in five UK workers now hold multiple jobs and almost a third are working longer hours just to keep up with rising everyday costs.

“While we are beginning to see early signs of recovery in employment, confidence is lagging far behind. Unless cost-of-living pressures ease, second jobs will remain less about opportunity and more about survival.”

Economic observers say it reveals deeper challenges in the UK labour market.

“Workers are facing a difficult balancing act: inflation continues to erode real wages and job opportunities are thinning out. Against this backdrop, it’s no surprise that many are relying on second jobs to stay afloat,” said Nina Skero, chief executive of the Centre for Economics and Business Research.

“While this adaptability is impressive, it highlights the wider fragility of the UK’s labour market and the need for policies that restore both stability and confidence.”

Hepling staff out

Experts recommend several practical steps for organisations seeking to support employees under pressure from rising living costs:

Open conversations about financial wellbeing: Employers can help by signposting staff to support and providing resources on money management or debt advice.

Flexible working options: Allowing flexible hours or remote work can help staff manage multiple jobs or family commitments.

Review pay and benefits: Regularly benchmarking pay against industry standards and considering targeted support — such as one-off cost-of-living payments or enhanced benefits — can help ease financial strain.

Mental health support: Promote access to confidential counselling or wellbeing resources, as financial stress is a major risk factor for anxiety and burnout.

Encourage skills development: Training and upskilling opportunities may help staff progress into higher-paid roles or find new opportunities within the organisation.

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