Keeping Up With Inflation: Which Gig Jobs Can Pay Off and Which Might Not in Today’s Economy

The gig economy has become a defining feature of the labor market, providing flexible income opportunities to millions worldwide.

But as inflation has surged over the last five years, an unavoidable question has emerged: are gig jobs keeping up with the rising cost of living, or are workers falling further behind?

What is Gig Work and How Much Can You Earn?

Gig work includes freelance, temporary, and task-based jobs facilitated through digital platforms like Uber, DoorDash, and Fiverr. These platforms allow people to earn income outside traditional full-time employment.

As of 2025, at least 42 million people in the US were involved in gig work, with participation highest among younger workers.

34% of Gen Z report holding a side hustle, compared to 31% of millennials, 23% of Gen X, and 22% of boomers.
Motivations vary, with 41% use extra income for discretionary spending, 35% for living expenses, 28% for savings, and 20% to pay down debt.
Inflation has forced workers to put in longer hours, with 88% of gig workers saying they now work more to keep up with rising prices.

Earnings vary widely depending on where the data is pulled. In mid-2025, the average gig wage stood at $18.73 per hour, ranging from $9.38 at the low end to $28.85 at the high end. That said, regional demand, platform policies, and specialization generally determine who earns enough to stay ahead of inflation.

The Inflation Situation

Inflation measures the increase in the cost of everyday goods and services over time. When inflation outpaces wages, purchasing power erodes.

In the United States, inflation trends over the past five years have been volatile:

2019: 1.8%
2020: 1.2% (pandemic slowdown)
2022: 8.0% (peak)
2023: 4.1%
2024: 2.9%
2025: 2.7% (moderating, but still uneven across sectors)

Inflation cooled in March 2025, primarily due to declining gasoline prices. However, persistent inflationary pressures remain in key sectors such as groceries. Food prices have surged by 30.7% since 2019 and are driven by rising input costs, ongoing supply chain disruptions, and elevated corporate profits. Also, economists warn that tariffs, which increase costs for importers and consumers, are likely to become the principal driver of inflation later this year.

Gig Pay Rates vs. Inflation

For 10 hours a week, a gig worker can generate an average annual income of about $13,744. However, this can still vary from one gig worker to another, influenced by factors such as geographic location, time investment, the nature of the gig, and regional demand.

While many side hustles provide significant earning opportunities, some may not keep up with the rising cost of living alone.

Gigs That Might Be Able to Keep Up With Inflation

Some roles have proven resilient, thanks to demand for specialized skills or creative expertise:

1. Motion Graphic Designers

Growth in this niche is fueled by digital advertising, streaming content, and corporate marketing needs, which can provide an average of $42.71/hour or more than double the average national gig wage.

2. Freelance Writers

Creative writing and blogging offer an average hourly rate of $42.11, while specialized niches like medical writing can command $23–$50.

3. Video Editors

At $40.13/hour, video editing remains one of the most competitive freelance categories. Skilled editors who combine technical ability with storytelling can often secure recurring contracts.

4. Graphic Designers

Freelance graphic designers average $35/hour on the higher end, with complex branding and digital marketing projects reaching higher rates.

5. Remote IT Support and Cybersecurity Consulting

Hourly pay ranges from $21 to $64, depending on specialization. The work involves troubleshooting, protecting networks, securing data, and solving complex technical problems.

Where Do These Jobs Earn More?

Web developers consistently rank as the highest-paid gig workers nationwide, claiming the top spot in 27 states, including Arizona, Colorado, Hawaii, Illinois, and Kentucky.

Meanwhile, content creators, including writers and bloggers, capitalize on regional market dynamics, especially in major metropolitan areas like New York City, Los Angeles, and Washington, D.C.

Gigs That Might Fall Behind Inflation

For many gig workers, expenses such as gas, vehicle maintenance, and insurance can significantly erode their earnings. As a result, those who depend on these types of gigs as their main source of income may face financial pressure, especially when inflation is not helping them.

1. Ridesharing Services

Uber and Lyft drivers have seen real earnings fall even with longer or shorter hours. In 2024:

Uber drivers earned $513/week on average, down 3.4% year over year.
Lyft drivers earned $318/week, down nearly 14%.

Hourly rates vary widely. Studies over recent years report a wide range of hourly earnings for ride-hailing drivers. Earnings have been recorded as low as around $9 to $12 per hour, while other research shows drivers making between $23 and $28 per hour.

These discrepancies largely stem from differences in how pay is calculated. Some analyses do not fully account for expenses like gas, insurance, and vehicle maintenance, nor the total hours drivers spend online rather than actively driving. Additionally, a driver's location, frequency of driving, vehicle-related costs, and customer tipping habits can greatly affect actual take-home pay.

2. Delivery Services

Food delivery platforms also show downward pressure:

Uber Eats drivers averaged $14.96/hour and down 5%.
DoorDash drivers earned $12.23/hour and down 3%.
Grubhub and Gopuff reported similar declines.

Favor was an exception, with a 10% increase to $11.97/hour, a sign of improved efficiency and optimized delivery assignments. However, it still remains below inflation-adjusted benchmarks.

3. Dog Sitting

Recent data indicate that the average hourly rate for dog sitting in the US typically falls between $16 and $24, but this varies significantly depending on location and specialization.

Cost-of-Living Adjustments & Their Importance

Cost-of-living adjustments (COLA) are wage increases tied directly to inflation metrics that preserve workers’ purchasing power amid price rises. Traditional salaried jobs, unions, and government roles often include COLA provisions.

In contrast, gig work rarely features automatic COLA, exposing workers to inflation’s erosive effects. The absence of COLA in gig employment jeopardizes financial security, increases income volatility, and undermines long-term economic stability for millions.

As such, adjusting nominal gig earnings for inflation offers a more accurate picture of financial health. Without such adjustment, apparent pay increases may actually represent diminished real income. Gig workers frequently shoulder additional costs without reimbursement, such as taxes, equipment, and unpaid work time, which further depresses net earnings. Furthermore, this can help ensure fairness and sustainability in an expanding digital labor market.

How To Stay Afloat

Staying afloat requires strategic approaches to maximize income, control expenses, and safeguard long-term stability.

Here are key tips to help gig workers navigate the pressures of inflation and fluctuating pay rates:

Diversify Income Streams

Relying on a single gig platform or job can leave workers vulnerable to pay cuts or reduced hours. Expanding across multiple platforms or complementary gigs can help stabilize earnings and open opportunities for higher-paying work.

Monitor and Minimize Expenses

Expenses such as gas, vehicle maintenance, phone plans, and equipment can consume a huge portion of gig income. Therefore, careful tracking and reducing unnecessary costs, such as using fuel-efficient vehicles or budgeting technology subscriptions, can help preserve net earnings.

Upskill and Specialize

As the gig economy shifts toward specialized and tech-driven roles, investing in skill development boosts earning potential. Certifications, advanced training, or niche expertise can unlock higher rates and more consistent gigs.

Leverage Technology and Platform Tools

Utilize app features and third-party tools to optimize work schedules, accept high-value gigs, and manage finances. Learning platform algorithms or “gaming” them ethically can help improve job allocation and pay.

Prioritize Health and Financial Planning

Without employer benefits, gig workers must proactively manage health insurance, retirement, and emergency savings. Partnering with healthcare marketplaces, setting up retirement accounts, and building rainy-day funds support long-term resilience.

Manage Spending Wisely

Break expenses into three categories: essential, important, and nice-to-have. Essentials include items like rent, food, and insurance; important covers vehicle maintenance or training; and nice-to-have items are discretionary, such as entertainment or subscriptions. This system makes it easier to scale back when income fluctuates while protecting core needs.

Set Aside Funds for Taxes

Since gig platforms don’t withhold taxes, workers should plan ahead by reserving a portion of each payout for quarterly estimated payments. Treating tax savings as a fixed expense reduces the risk of surprise bills and penalties at year-end.

The Road Ahead for Gig Work in an Inflationary Economy

The gig economy offers both opportunity and uncertainty, but still remains a go-to source of income for millions in the country.

Although some gig jobs offer promising opportunities to keep pace with or even outearn inflation, many workers face ongoing challenges to sustain their purchasing power after expenses. Success in today’s gig market requires adaptability, financial savvy, and a proactive approach to skills and income diversification.

As inflationary pressures continue, gig workers must balance maximizing earnings with managing expenses and leveraging new tools and platforms. Additionally, advocating for better protections, transparency, and benefits remains vital for long-term economic security in the gig economy.

Disclaimer: Giggle Finance provides Revenue-Based Financing programs for business purposes only. Any mention of any loan product(s), consumer product(s), or other forms of financing is solely for marketing and educational content purposes and to help distinguish Giggle Finance’s product from other comparable financing options available in the markets.

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