4 Side Gigs That Are Negatively Impacted by Inflation

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Side hustles emerged as one of the most effective inflation hedges in the post-pandemic crisis of rising prices. However, those same inflationary pressures robbed some of the most common and accessible gigs of their full profit potential.

As the masses once again pursue side income in anticipation of uncertain economic times, the lessons of the recent past should make them think twice about the following options, which have proven to be especially sensitive to inflation. 

Bartenders

During the peak of the inflation crisis, Americans cut back on bars, restaurants, pubs and clubs. Many could afford to visit restaurants only by passing on alcoholic beverages, a few rounds of which can quickly double a dinner bill. 

In 2023, research from the alcohol e-commerce platform Drizly showed that instead of going to bars, drinkers were drinking at home to avoid the notorious markup of served cocktails. These trends emerged not only because the cost of wine, beer and booze were rising faster than most other things — which they were — but because scaling back on drinking and dining out is one of the easiest and most effective ways to cut discretionary spending. 

Either way, it was good news for liquor stores and bad news for bartending, which has long been one of the most accessible, lucrative and, for many, enjoyable side hustles.

Rideshare and Delivery Drivers

Few inflationary pressures hit more people harder and more frequently than high gas prices. When gas is expensive, driving is expensive — and that doesn’t bode well for side hustlers who rely on their cars for gig income.

In April 2022 — several months before the price per gallon peaked at a record high of over $5 that summer — CNBC reported that soaring gas costs were forcing rideshare drivers off the road. Fuel had gotten so expensive that it accounted for half of the previous month’s combined inflation.

With drivers unable to earn enough to justify their time and effort, companies like Uber, Lyft and Doordash offered relief through fuel surcharges and fare hikes. However, that only decreased demand from cash-strapped riders, making it even harder to earn money as a rideshare side hustler.

Wedding Services Providers

In 2024, the Washington Post reported on the phenomenon of the shrinking American wedding. Lingering inflationary pressures had driven up prices for the many products and services that go into a nuptial celebration and forced couples to trim guest lists, opt for smaller cakes, wear shorter and simpler dresses, and make cutbacks that harmed the many side hustles that rely on the wedding industry to thrive, including:

• Photographers
• Videographers
• DJs
• Bakers
• Caterers 
• Makeup artists
• Event planners

Travel Service Providers

While not unique to that moment, when inflation crunches budgets, discretionary luxuries like vacations are among the first on the chopping block, which makes travel-related side hustles equally vulnerable to rising prices. They include: 

• Travel advisor
• Travel agent
• Trip planner
• Tour guide

In 2023, Kiplinger reported that inflation had forced three out of four Americans to curtail, cancel or otherwise change their travel plans. With rising prices making necessities more expensive to buy and money harder to save, vacations — like weddings — got smaller or were put on hold altogether.

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