From side hustle to survival: Navigating first jobs that don’t pay enough

By Toni Frana, Career Expert at Zety.com 

As new graduates embark on their career with excitement and anticipation, it’s possible that they may face some unexpected challenges. The job market is challenging right now, and the latest figures from the Federal Reserve Bank of New York suggests that the unemployment rate for new graduates is 5.7%, above the overall national average of 4.3%. 

For those new graduates who do find a job quickly, they may find the starting salary offered may be far lower than they expected. These challenges have led many new grads to get creative after college. In fact, new graduates may end up juggling not only a new full-time job, but also a side hustle or gig work just to pay their bills. While this may be a different path than some had planned, it may be the reality for many. However, with strategy and resilience, it’s possible to balance these two things and even turn them into stepping stones leading to bigger and better opportunities in the future.  

The Economic Reality Facing New Graduates 

Economic uncertainties, inflationary pressures, and student loan debt are impacting workers in many ways. According to Zety’s internal resume template data, student loans and debt actually shape career choices, including over a third of workers taking on side gigs just to make ends meet. This may only grow in the coming years as there has been a rise in underemployment in graduates working jobs that don’t require their specific degree. Furthermore, in that same report, 37% of workers indicated that they accepted a job they didn’t want just to be able to pay down some of their debt. 

These economic uncertainties coupled with a gap between compensation, student debt and rising unemployment of new grads, new professionals risk experiencing burnout and frustration as a result of these challenges. 

Why “First Jobs” May Not Pay Enough 

The last few years have shifted the work landscape in incredible ways. First, in 2020, the pandemic upended many industries and catapulted people into remote work almost overnight. Over the last two years, AI technologies have exploded leading to shifts in how work is completed. This has impacted the entry level roles graduates rely on most directly.  

These shifts have also led to a more saturated job market and stagnated wages relative to inflation, making our dollars not go as far. Furthermore, many new professionals aren’t confident yet in their negotiation abilities when it comes to salary and compensation negotiation discussions. The long held (and outdated) belief by many that you have to “pay your dues” only serves to worsen the problem. The reality is that if you choose not to counter offer a salary package even as a new professional, you risk leaving money on the table. 

The Rise of Side Hustles

The result of these uncertainties, as well as the wage gap between debt and salaries, means that people are getting creative in how they work to make up the difference. Over the last several years, side hustles have become less about doing the work as a creative outlet or hobby, and more about a means to an end. In fact, for 38% of workers, finding an additional part-time job, or side hustle is a key way to make progress in paying down debt, and a strategy to contribute to personal savings. 

In addition to potential financial benefits, side hustles offer the ability and opportunity to upskill, network, and give people exposure to entrepreneurship. Each of these can help in future, full-time endeavors as well. Upskilling shows employers you take initiative and have a growth mindset. Networking opens the door for new conversations and opportunities that may not have otherwise existed, and finally, because side hustles can be independent contractor roles, you’ll gain experience in owning your own business. 

While the benefits of a side hustle are great, there are some challenges with taking on a part-time job while also working full-time. With two jobs, there is more of a risk of burnout because more of your time is spent at work. Even if your side hustle is something you really enjoy, there could still be blurred lines between your personal time and work, which can contribute to burnout and other issues like anxiety. Data supports this, as 7 in 10 Gen Z workers say that burnout is a real issue for them because of being overworked. 

Strategies to Thrive as a New Graduate

If you find yourself contemplating adding a side-hustle to your current workload, it’s important to have a plan in place to manage some of the challenges. With some thoughtful planning, you can ensure you are setting yourself up for success in both your full-time and part-time jobs. Here are suggestions for success; 

• Make a budget and track your cash flow and expenses.
• Choose a side-hustle that aligns with your long-term career goals to help you build career credentials. 
• Be realistic about your time commitment to a side-hustle.
• Negotiate salary and pay ranges through practice and research. 
• Set strong boundaries and find activities that help reduce anxiety and manage stress. 

By outlining your budget, your goals, and understanding your time constraints, you will have strategies in place to help you minimize your risk of experiencing burnout and increased anxiety. 

Turning Short-Term Struggles Into Long-Term Gain

Your first role out of college may not meet your salary expectation, however, this is only temporary. This experience is also an opportunity for you to learn more about your industry and career choice. In your role, you’ll be able to expand your network and test your career interests. All of this is valuable information to have as you move forward in your career to make sure you are making the right decisions for you and the goals you have set. 

Employers ultimately control compensation plans, larger economic issues impact each of us and employers respond to those pressures accordingly. Keeping a positive mindset during this transitional time in your life is important. Reframing feelings of being in survival mode to something that is manageable and beneficial in terms of skill-building, networking and career growth will pay off in the long run. 

Starting your career is an exciting time even with the challenges that come with it. Your value isn’t defined by your paycheck, and building your career in a sustainable way is a journey that takes time. Using a side-hustle as a strategy to manage your early career season has many benefits that will pay off in future career endeavors. Managing your time along the way ensures that you will be able to enjoy these benefits, rather than simply “survive” the challenges that come with being an early career professional.