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How Surging Gas Prices Are Already Impacting the U.S. Job Market

Workers are getting more selective because of commuting costs.

By Paige Cerulli , Edited by Sara Albertelli

Updated April 16, 2026

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As gas prices continue to rise, you and many other Americans may be looking for easy ways to pocket more cash. In fact, the current gas price surge, prompted by the Middle East conflict that's disrupted oil supply through the Strait of Hormuz, is changing how Americans are willing to work, which, in turn, is reshaping the job market.

Job seekers aren't just weighing salaries and benefits, but are also now considering the cost of getting to and from work. The transition spells a shift for workers, and employers may need to adapt to attract and retain the employees they need.

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How gas prices are impacting consumers

The Iran war, which began on February 28, sent oil and gas prices soaring, and Americans are paying the price. According to economists at Oxford Economics, a consulting firm, if gas prices average $3.70 per gallon all year, consumers are projected to pay an extra $70 billion, which is much more than the increased $60 billion in tax refunds that Americans are expected to receive this year.

The U.S. Energy Information Administration predicts that gas prices are going to peak at an average of $4.30 in April, and could average more than $3.70 per gallon for the year. Even if the Strait of Hormuz reopens and the war ends, fuel prices could continue to rise for months after, meaning consumers are likely to be dealing with these higher fuel costs for some time.

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How timing worsens the gas price impact

Gas prices increased in 2022 when Russia invaded Ukraine, but today's gas spike is difficult for consumers to weather, partially because of the timing. In 2022, many households still had savings from pandemic stimulus payments, and many companies were increasing pay rates and actively hiring staff as they rebuilt from the pandemic.

Today, hiring is much slower, and many households already face significant financial strain. The ongoing increased cost of groceries has depleted many households' savings, and some households have relied on credit cards to cover the gap between their income and the increased cost of living. They simply can't afford to pay more at the pump.

Why workers are seeking flexible work

A survey by Indeed Flex reveals that the rising gas prices are prompting many workers to seek out flexible work arrangements. The March 2026 survey of 1,000 respondents, including 600 in the United States, found that 71% of respondents rely on flexible work as a primary or a consistent secondary source of income. Of those surveyed, 42% indicated that flexible work is their primary income, highlighting how critical these work arrangements have become.

Additionally, 78% of respondents say that rising gas prices have prompted them to take on more flexible work.

Why workers are more selective about work

The survey also indicates that workers are becoming much more selective about the work they take on. Seventy-eight percent of respondents indicated that they have become more selective about the jobs they accept, and two-thirds have reduced how far they are willing to travel to work.

With gas prices soaring, that increased selectivity is a practical move that's likely driven more by numbers than it is by convenience. If an employee has to drive an extra 10 miles to a job that pays $20 per hour, choosing a job that pays $18 per hour but that's 10 miles closer to home might make financial sense.

How the change is shifting the labor market

Rising gas costs are prompting employees to be more selective about work, and that's changing the labor market. As employees have reduced how far they are willing to travel for work, they're effectively shrinking the geographic labor market, meaning employers have fewer candidates to choose from.

That could spell trouble, particularly for employers in suburban and exurban areas, where employees would naturally need to travel longer distances to get to work. These employers might lose employees and candidates as employees become more selective.

What employers need to do

Employers may need to pivot and make some deliberate changes to retain and attract employees and candidates. They may need to raise wages to help employees cover the increased cost of gas. Depending on the industry and the job positions they're hiring for, employers might explore offering increased hybrid or remote work opportunities to help offset gas costs and appeal to candidates who value flexible work arrangements.

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How the movement fits into the broader job market

Interestingly, the broader job market gives workers less leverage to demand location flexibility at this time. The February Job Openings and Labor Turnover Survey indicated that job openings fell by 358,000 from January to February. February also marked the lowest level and rate of hires since April 2020, just 3.1%.

With fewer jobs to choose from, workers probably have less bargaining power with employers. However, that fact might prompt more workers to turn to self-employment or gig work even more.

Bottom line

The job market is changing, and surging gas prices are partially to blame. Flexible work arrangements are a major component of many households' income, and such arrangements could provide a lifeline to help workers cover increased costs.

If you're considering part-time or gig work that involves driving-based income, check current gas prices and your vehicle's fuel efficiency to see if the work makes financial sense. Gig work might help you pay your bills, but it's important to calculate how much you'll be spending to do the work, too.

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Author Details

Paige Cerulli

Paige Cerulli is a writer for FinanceBuzz with more than 15 years of experience covering personal finance. She focuses on trending financial topics and helps readers make sense of everyday money decisions to more timely topics like tax refunds and how to make the most of that extra cash.