Changes in the work environment have rarely been as dramatic as they’ve been since the beginning of the COVID-19 pandemic. The rise of remote work has altered the traditional work landscape, and flexible hours now rival salary and job security as the most highly valued aspects of work for many employees.
A recent LendingTree survey of 2,000 Americans found that 51% of remote workers make extra money while working their principal job, and 58% have contemplated doing so. A whopping 90% say remote employment has improved their work-life balance.
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Part-time work is on the rise too. According to Statista, about 28 million individuals worked part time in the United States in 2024. This represents a 13.7% increase from 2020 and a huge increase from 1990, when there were just over 20 million part-time employees in the U.S.
There are lots of factors to consider when choosing between a part-time job and a side gig. Here’s a rundown of some pros and cons of both.
Also see five side hustles that are on their way out in the Trump economy.
Part-Time Work: Pros and Cons
Part-time positions first became popular during the 1970s and 1980s, benefiting both employers and workers for different reasons. However, over the last few years, part-time work postings have increased as companies are trading full-time roles for part-time employment in all sectors, according to Indeed Hiring Lab.
Americans are looking to improve their work-life balance and work less hours, and part-time work often fits the bill.
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Advantages of Part-Time Work
Here are some key advantages of part-time work.
- Steady paycheck: Choosing to work part time means making less than being employed full time; however, it’s still a steady paycheck. With proper budgeting in place, most workers can make 30 to 35 hours (or less) work for their everyday needs and more.
- Benefits and job security: People in full-time employment are still far more protected from job loss, but health insurance, retirement plans and paid time off (PTO) are occasionally offered via part-time jobs, particularly in corporate or educational settings.
- Skill development: Your side work allows you to develop skills of your own choosing on your own time, but part-time jobs are more apt to offer “official” or certified training, networking opportunities and resume building on the company’s dime.
Part-Time Work Drawbacks
While part-time work does come with a lot of advantages, there are also drawbacks to consider.
- Less flexibility: Part of the reason many workers seek out or decrease their hours to part time is a desire for flexibility. However, unless your employer is unusually accommodating, you might find that your part-time schedule is as locked in as a full-time one.
- Earning potential: Whatever the reason for taking a part-time job, you’re going to be making less money than working full time. However, part-time hours free up time to pursue other interests and job opportunities.
Side Gigs: Pros and Cons
The term “side hustle” discredits the hard work and expertise of go-getters brave enough to take on a second job, regardless of the hours they choose to invest every week. Whether your interest in pursuing a side job is purely financial or passion-motivated, this kind of work can help reduce your stress and improve your well-being.
Side Gig Benefits
Here are some benefits that side gigs offer.
- Financial security: Forbes hit the nail on its head when it said, “In an era of rising living costs and economic uncertainty, extra earnings can help cover daily expenses, pay off debt, or increase savings.” Making money with a secondary gig is hard work, but the financial (and mental health) rewards are immeasurable.
- More flexibility: The pandemic has changed not only where Americans work but when. There are plenty of opportunities available for freelance or gig workers to earn an impressive amount of money on their own schedule.
- Growing your network: Promoting a side business will introduce you to people you might not otherwise encounter in your regular work. You can establish new relationships for your side business, and some of them can even help your day job.
Disadvantages of Side Gig Work
And here are some of side gigs’ disadvantages.
- Potential for more stress: Remember that a side gig is additional work to your primary job. If you’re dedicating your nights and weekends to a side hustle, you may be depriving yourself of enough free time to relax and enjoy activities that don’t entail making money or selling yourself. “This always-on mindset can be wearing, and if others — partners, spouses, children and even pets — are in the picture, there’s a danger of leaving some feeling neglected,” said Washington Trust Bank.
- Lack of benefits: The absence of standard employee benefits like health insurance, paid time off and retirement plans is a significant drawback of gig economy work. This might cause financial insecurity when individuals have to secure these benefits independently.
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This article originally appeared on GOBankingRates.com: Need Extra Money? How To Choose Between a Side Gig and Part-Time Work
