What is a side hustle and the gig economy: explained with examples

What a side hustle is

A side hustle is work a person does alongside their main job, studies or childcare. What sets it apart from an ordinary second job is flexibility: the person chooses how much time to give it and when to work.

Typical examples are small freelance jobs, taking part in paid research and website tests, microtasks, selling handmade or second-hand goods, tutoring, and running social media for a local business. What they all have in common is that they top up income rather than form its basis.

What the gig economy is

A gig is a one-off piece of work, a single task or a single shift. The International Labour Organization describes gig work as one-off jobs where a digital platform connects workers with consumers, and the task itself is done online or offline.

The European Foundation for the Improvement of Living and Working Conditions (Eurofound) defines platform work as matching the supply and demand for paid work through an online platform using an algorithm. This work has three parties: the client, the platform’s algorithm and the worker, and it is organised around individual tasks or projects rather than an ongoing employment relationship.

Side hustle vs gig economy: the difference

The two ideas overlap but are not the same. A side hustle describes the role of the income in someone’s life: extra. The gig economy describes how the work is organised: in tasks through a platform. A courier for whom delivery is their main job works in the gig economy, but it is not a side hustle. And someone selling jewellery to friends without any platform has a side hustle but is not part of the gig economy.

Two kinds of gig work: online and on location

The International Labour Organization distinguishes two kinds. The first is crowdwork: online work that can be done from anywhere, such as microtasks, data labelling or website tests. The second is on-demand work via apps: physical services in a particular place, such as delivery or rides.

For someone looking for extra work from home, the first kind is the relevant one. It is not tied to a city, needs no transport and is often available from many countries. But competition is global too: people from all over the world may be going for the same task.

How many people have a side job

There is no precise data on "side hustles" as such, but second-job statistics give a guide. In the UK, according to the Office for National Statistics (ONS), 1.294 million people had a second job in September–November 2025, or 3.8% of those in work.

For the EU, the latest comparable Eurostat figure we could confirm is for the second quarter of 2021: at that time just under 4% of employed people aged 20–64 had a second job. These figures count second jobs specifically; online side income such as research or microtasks is often invisible to the statistics, so the real number of people with extra income is most likely higher.

How the EU regulates platform work

EU Directive 2024/2831 sets minimum rules to improve working conditions in platform work and protect workers’ personal data. At its core, it aims to determine the employment status of people working through platforms more accurately, regulate algorithmic management, and give workers information about automated decisions and the ability to challenge them.

EU member states must transpose the directive into national law by 2 December 2026. For someone working through platforms in an EU country, this means more transparency: how the algorithm allocates tasks and why, for example, an account has been restricted.

Pros and cons of a side hustle

The main advantages are flexibility and a low barrier to entry: many online side jobs need neither investment nor experience, and you can work in your free hours. The main drawbacks are irregular income, no social protection, and the fact that you handle tax and record-keeping yourself.

• pro: you choose when and how much to work
• pro: you can start with no investment and no experience
• pro: you can try a new field without leaving your main job
• con: income is irregular and hard to plan
• con: no sick pay, holidays or guarantees
• con: you have to declare tax yourself

The most popular online side hustles

Among online side jobs, the most accessible are those that need no stock and no client base. Paid research and interviews: Respondent says a 30–90 minute remote interview pays roughly $40–150. Microtasks: Clickworker pays weekly, to PayPal from €10. Freelance jobs: translation, design, writing, video editing.

On 19 September 2026 our catalogue had 769 live studies, 621 of them with known pay. Typical pay was $40, half of studies paid between $25 and $100, and the typical length was 30 minutes. For a side hustle this is a convenient format: one session fits into an evening or a weekend.

How to choose your side hustle

Start with three questions. How many hours a week can you realistically give? What can you do better than others — or is it better to start with something that needs no skills? Do you need income this month, or are you ready to spend a few months building a client base?

If you have little time and need income quickly, research, tests and microtasks fit best. If you have a skill and patience, it is worth building freelance work. If you have your own product or hobby, you can sell what you make. Often a combination works best: quick income from research while you gradually build up freelancing.

Tax on a side hustle in Ukraine

Side work is income too, and it is taxed. If money comes from foreign platforms to a private individual, it is foreign income: you declare it yourself at 18% income tax and a 5% military levy, and file the return by 1 May of the following year.

If your side hustle is regular and you work with clients, it is often easier to register as a sole trader (FOP). For the third group in 2026 the single tax rate is 5% of income, and the minimum social contribution is 1,902.34 hryvnias a month. For small and irregular side income the social contribution can eat up most of what you earn, so choose the form after doing the maths. If you live outside Ukraine, check the side-income rules in your country.

How to combine a side hustle with your main job

Before taking on side work, reread your employment contract: some employers restrict working for competitors or using work equipment for outside tasks. Do your side hustle on your own computer and in your own time to avoid conflicts.

Plan realistically: two or three hours at the weekend and a little time on weekdays is usually enough for noticeable extra income without burning out. If side work starts crowding out rest and sleep, cut it back: extra income is not worth losing your main job.

A side hustle without scams

Scammers exploit the popularity of side hustles: they offer "side work" for likes, "simple tasks" that require a deposit, or "passive income" for a payment. There is one rule: a real side job pays you, you do not pay for access to it. If you are asked for money, card details or SMS codes to start, it is a scam. Check a platform before signing up: an official website, a help centre with payment rules, and reviews from other people.