Gig Workers Struggle in Trump Economy Amid Rising Costs and Cuts

Challenges Facing Gig Workers in the Current Economy

According to a recent analysis by Defend America Action, individuals engaged in gig work are encountering significant financial difficulties within the current economic climate.

Gig workers encompass a wide range of roles, including DoorDash delivery personnel, Uber drivers, freelancers, and other self-employed individuals providing one-time services primarily through online platforms. This sector, involving over 50 million Americans, is recognized as one of the most rapidly expanding job sectors.

Despite its growth, many gig workers struggle with unstable employment and inconsistent income. The report highlights that these issues are being intensified due to increasing costs associated with tariffs, ongoing conflict in Iran, and reductions in Medicaid and the Affordable Care Act (Obamacare).

Rising fuel prices, which have surged by 60% since the onset of the Iran war, are a clear indicator of these challenges. Rideshare platforms like Uber do not compensate drivers for fuel expenses, a burden also borne by many independent truck drivers.

John Mejia, an Uber driver based in California, shared with The Guardian in April, “A few weeks ago, I filled up my hybrid car for $36. Now it’s $60.”

Inflation, coupled with high fuel costs, has led to increased retail prices. On average, Americans spent $2,300 more on goods and services last year compared to 2024.

The economic pressure on gig workers is expected to intensify with the implementation of the One Big Beautiful Bill Act, which involves a $1 trillion cut to Medicaid. This change is anticipated to result in 7.8 million Americans losing their health insurance, with approximately 20% of Medicaid users being self-employed.

The Act also did not continue the enhanced tax subsidies that reduced the cost of Obamacare plans, potentially forcing 4.2 million individuals to either pay more for health insurance or forego coverage. About 38% of those affected are self-employed.

Though the report primarily addresses the Trump economy, it acknowledges the role of congressional Republicans in facilitating these conditions.

The report states, “Instead of protecting gig workers and self-employed Americans against higher costs, Republicans in Congress are driving countless hardworking Americans to lose life-saving coverage and go without care on top of skyrocketing prices.”