Increase in side hustles expected in 2025 – what do employers think?

Man with a laptop and sandwich on the desk in front of him using a phone.

As people reevaluate traditional career paths, more of them are expected to turn toward side-hustles in 2025, according to multiple new studies.

The latest 2024 Side Hustle Research from Fiverr, for instance, revealed that nearly 70 per cent of employed Australians are now engaging in or contemplating side hustles.

This trend is most pronounced among younger Australians. According to the research, 81 per cent of 16-24-year-olds are diversifying their work through roles ranging from digital content creation to e-commerce. These side hustles are not only a source of additional income, but vehicles for career autonomy and work-life balance.

Almost half (45 per cent) of those over 55 are also engaging in side projects, reflecting a desire to blend work with leisure to stay active and financially secure while also signifying a holistic shift in how work and personal fulfilment have evolved across generations. 

Financial gain is a primary driver for doing side hustles (at 72 per cent), alongside skills development, particularly among young professionals (over 22 per cent), and the desire for flexibility and autonomy (21 per cent).

“Side hustles are no longer solely about earning extra cash; they are pathways to professional and personal advancement,” said Fiverr CEO Micha Kaufman. “While income is still a powerful incentive for workers, it’s promising to see how various generations are also leveraging side projects to gain autonomy and acquire new skills – showcasing a workforce that’s more flexible, adaptive, and fulfilled.”

Side hustles to shape eCommerce in 2025

With the side hustle trend showing no signs of slowing down, CouriersPlease CEO Richard Thame forecasts that side hustles will redefine eCommerce in 2025.

“With Australia’s living cost index rising by 4.7 per cent in the year leading up to September 2024, we are witnessing a significant shift,” commented Thame. “I believe 2025 will mark an unprecedented surge in Australians embracing the side hustle economy.”

Thame has pointed to the surge in Australians leveraging platforms like Etsy, eBay, and Shopify, platforms that have enabled entrepreneurs to launch their businesses with minimal startup costs. He also noted that the integration of TikTok Shop into Shopify has taken social commerce to new heights, enabling in-app shopping experiences that were previously unimaginable.

Thame said, “We’ve observed a significant uptick in side-hustle entrepreneurs and small businesses utilising our delivery services. This trend underscores the growing need for flexible and scalable logistics solutions that cater to the evolving demands of small-scale eCommerce operators.”

Employer sentiment towards side-hustling employees

As far as employer sentiment on side hustles is concerned, the Fiverr report noted that 79 per cent of business leaders showed support for side hustles, recognising benefits like innovation and higher employee satisfaction.

Despite the general endorsement, employee transparency remains a challenge: 44 per cent of those who have/are planning to start a side hustle choose not to disclose their side activities, 23 per cent downplay their involvement, and just 33 per cent are fully open about their side gigs.

There is also the matter of side hustling employees’ engagement at primary jobs. While 39 per cent of leaders believe side projects boost workplace engagement, 45 per cent see no effect, and 15 per cent fear potential distractions. 

Despite such concerns, 66 per cent of leaders recognise that allowing employees to pursue personal projects can deepen their commitment to their main jobs. Millennials and Gen Z are especially supportive, with 70 per cent and 80 per cent respectively agreeing that side hustles promote loyalty, while Baby Boomers are more sceptical at 45 per cent.

On another note, 69 per cent of business leaders are open to collaborating with employees on side projects that align with organisational goals. With 64 per cent of employees affirming that side hustles have helped them gain valuable job skills, Fiverr says that this integration could be a win-win for companies and workers alike.