How to Make Money After Layoff: 4 Side Hustle Strategies That Actually Work

 Watch my AM Northwest segment on this topic at the end of the article for a quick summary.

The layoff wave continues to surge through 2025. According to recent data, over 77,000 tech workers have already been laid off this year across 332 companies—that's nearly 500 people per day. Major corporations like Microsoft (6,000 employees), Disney, and countless startups are cutting staff at unprecedented rates. If you've found yourself caught in this tide, you're not alone—but more importantly, you have options.

Before you panic or accept the first offer that comes your way, consider this: the freelance economy has grown to $556.7 billion globally, with 64 million Americans now participating in some form of independent work. That's 38% of the U.S. workforce, contributing $1.27 trillion to the economy annually. The gig economy isn't just a stopgap—it's a legitimate career path that's expected to encompass over 50% of the U.S. workforce by 2027.

A strategic side hustle can keep cash flowing and your confidence high while you search for the right role. Here's your four-step roadmap to creating your own safety net.

1. Do a 10-Minute "Skill Sweep"

Before diving into the freelance marketplace, you need to identify what marketable skills you bring to the table. Research shows that 61% of successful freelancers use two to three skills in their weekly work, while 34% leverage more than three. The key is identifying skills that solve urgent problems.

Action Steps:

• Write down your most marketable skills. Include technical abilities (coding, design, writing, planning, organizing) and soft skills (mediation, communication, problem-solving).
• List three things people always ask you for help with. These informal requests often reveal your most valuable—and marketable—talents.
• Circle the one that solves an urgent pain/problem. Focus on skills that save people time and money or help them out of a mess. These command premium rates.

The data backs this approach: freelancers in specialized, problem-solving roles earn significantly more. Web developers average $28-70 per hour, while those in finance and business operations can command even higher rates. In fact, 4.7 million independent workers in the U.S. now earn over $100,000 annually—a 57% increase from 3 million in 2020.

2. Craft a Flat Fee Summer Project Offer for a Small Business Owner

Small business owners are your sweet spot. Research indicates that 70% of SMBs in the U.S. have worked with freelancers at least once, with 81% planning to hire freelancers again. Even better? 83% agree that freelancers have greatly helped their business. After layoffs, 69% of employers hired freelancers to fill gaps.

Small businesses particularly need support because they often can't afford full-time help. By packaging your expertise into a fixed-scope, flat-fee project, you remove the risk and make it easy for them to say yes.

Sample Offers:

If you're an operations pro: Create a "Back-Office Clean-Up Special" where you'll install software to organize files, automate invoices, and set up a task board for a flat fee of $2,500-5,000. Promise specific deliverables: "In 30 days, I'll reduce your admin time by 10 hours per week."

If you're a graphic designer: Bundle a "15-Post Social Media Refresh" with new templates, updated brand colors, and a style guide for $1,500-3,000. The average small business spends 6-10 hours per week on social media—you're giving them their time back.

If you're in marketing: Offer a "Quick-Win Marketing Audit" that identifies three revenue opportunities they're missing, complete with implementation roadmap, for $1,000-2,000.

The key is specificity. Vague offers like "I do consulting" won't cut it. Define the scope, timeline, and outcome clearly.

3. Hang Out Your Own Shingle

Launching your own business might be your best move if you have an entrepreneurial spirit and don't mind marketing yourself. The numbers are encouraging: 85% of freelancers believe the best days are ahead for freelancing, and 65% of independent workers feel more secure than traditional employees because they have multiple income streams.

Service businesses are easiest to launch—no inventory, minimal startup costs, and you can begin immediately. But don't jump in blindly.

Launch Strategy:

• Spend 3-5 days doing market research. Scan online forums, LinkedIn groups, and local business networks for recurring problems. Look for phrases like "Our books are a mess," "We need help with customer service," or "Our website isn't converting."
• Align market needs with your strongest skill. If you see multiple businesses struggling with email marketing and you're a copywriter, that's your niche.
• Activate warm contacts. Email former colleagues, friends, and LinkedIn connections with a simple message: "I'm launching [specific service] this summer to help [target audience] with [specific problem]. Referrals welcome." Research shows most freelancers (over 70%) find their first clients through existing networks.

Pro tip: 90% of freelancers say clients want professionals with specialized skills. Don't be a generalist—pick a lane and own it.

4. Volunteer or Become an "Adult Intern" if Money Isn't Critical

Sometimes the best investment is strategic positioning. If you have a financial cushion (emergency fund, severance package, or spouse's income), consider volunteering or interning at a company where you'd love to work. This approach is efficient because relationships drive hiring—it's not just what you know, but who knows what you can do.

Strategic Volunteering Framework:

• Pick a stretch company you'd love to join—one that would generally be out of reach.
• Offer 5-10 hours per week for specific projects, such as data clean-up, event planning, operations support, and content creation.
• Negotiate clear learning goals and résumé credit. Get it in writing so that you can list this experience and get a LinkedIn recommendation.
• Deliver exceptional value. When a position opens up, you'll be the insider candidate they already know and trust.

This strategy works because it reduces hiring risk. Companies spend an average of $4,000-15,000 to hire and onboard new employees. You become the obvious choice when they already know your work quality and cultural fit.

The Reality Check: Challenges and Solutions

Let's be honest, freelancing isn't all flexibility and freedom. Half of freelancers report payment issues, 30% struggle financially at times, and managing irregular income is a real challenge. But with proper planning, these obstacles are manageable:

• Payment protection: Always use contracts, require 25-50% upfront, and consider platforms like Upwork that offer payment protection.
• Income stability: Aim for 3-5 recurring clients rather than one-off projects. Diversify across industries to protect against sector-specific downturns.
• Benefits gap: Factor in health insurance, retirement savings, and taxes (set aside 25-30% of earnings). Join professional associations for group insurance options.

Your Next 48 Hours

The best time to start was yesterday. The second-best time is now. In the next 48 hours:

1. Complete your skill sweep (10 minutes)
2. Research 10 small businesses in your network or local area (2 hours)
3. Draft one specific flat-fee offer (1 hour)
4. Send five emails to warm contacts announcing your availability (30 minutes)

Remember: 86% of freelancers work from home, 77% report better work-life balance, and 60% who left traditional jobs now earn more than they did before. The freelance economy isn't just surviving—it's thriving.

Being laid off doesn't mean being powerless. It might just be the push you needed to discover a more flexible, potentially more lucrative way of working. Whether you use freelancing as a bridge to your next role or find it's your new career path, taking action today creates options for tomorrow.

The safety net is there—you just need to weave it.

 Watch the TV segment on this topic on AM Northwest below: