Business & Investments

Dubai: Are side hustles affecting young professionals’ day jobs?

Side hustles are increasingly influencing the performance and engagement of young professionals in Dubai, as rising living costs, wage stagnation and shifting attitudes toward work push more employees to juggle multiple roles alongside their full-time jobs, according to human resources experts and career coaches in the UAE.

Recent data highlights the scale of the trend. A Harris Poll shows that nearly six in 10 Gen Z workers and almost half of Millennials have side hustles. A 2024 Glassdoor-Harris poll further found that 39 per cent of employees take on additional work to supplement their income, with the figure rising to 57 per cent for Gen Z and 48 per cent for Millennials. While ambition and flexibility remain key motivators, financial pressures and the desire for long-term security are increasingly driving the shift.

In Dubai, the trend is amplified by higher housing costs, rising prices of everyday essentials and evolving definitions of career success. HR professionals say these factors are changing how younger employees view traditional employment, with many no longer relying on a single job as their sole source of stability.

Jessie Joy, Head of HR and Administration at Magnitude Creative, noted that side hustles have become more common with the rise of remote and hybrid working models. She explained that many employees, particularly Gen Z, begin part-time or freelance work while studying and continue even after securing full-time roles. While this provides additional income and a sense of security, it also presents challenges for employers.

“When employees constantly switch between their primary job and secondary work without adequate rest, burnout becomes a serious issue,” Joy said. She added that workplaces are increasingly dealing with late arrivals, early departures, unplanned leave and reduced focus due to fatigue, all of which can affect engagement, loyalty and long-term productivity.

Career transformation coach Hemant Jain said many Millennials view side hustles as a financial safety net amid uncertainty, while Gen Z professionals often treat them as low-risk experiments to explore interests and career paths. However, he warned that the time and energy required often exceed expectations, negatively affecting attentiveness and commitment at work. Employers, he added, frequently struggle to address the issue because side hustles are rarely disclosed.

For many young professionals, side hustles are not just about earning extra money but also about skill-building and future-proofing careers. Aisha Haddad, a 24-year-old Syrian expat in Dubai, said her freelance work helps her support family members back home while developing skills not offered by her full-time role.

Others point to broader economic and technological concerns. Rising rents and commodity prices have pushed some young professionals to explore alternative income streams, including freelance work and investments. At the same time, fears around automation and artificial intelligence replacing traditional roles are prompting many to diversify their income sources across multiple projects.

As side hustles become more embedded in the professional lives of young workers, experts say employers may need to rethink policies around flexibility, workload management and employee wellbeing to ensure productivity is maintained without contributing to burnout.