Economy & Policy

Gas at $4.50 a Gallon Is Rewiring How Americans Hunt for Jobs

A Monster survey finds 65% of U.S. job seekers are reordering their priorities as gas nears $4.50 a gallon, with nearly half turning down offers over commute costs.

By Grace Kim

3 min read

Updated

U.S.-Iran conflict is causing unexpected problems for Americans: 65% of employees want jobs that help them avoid paying
U.S.-Iran conflict is causing unexpected problems for Americans: 65% of employees want jobs that help them avoid payingNicola since 1972 / Openverse

What's News

  • 65% of prospective job movers are changing search priorities due to gas prices, per Monster; 23% want roles closer to home and 20% prioritize fully remote work.
  • Regular gas averages nearly $4.50 a gallon, up from $3.15 a year ago; Brent crude trades at $105 per barrel amid Strait of Hormuz supply disruptions.
  • 32% of employed Americans would demand at least a 20% pay raise to commute 20 extra minutes; 49% have turned down jobs over commuting costs or length.

Seven months into the U.S.-Iran conflict, 65% of American job seekers are changing their search priorities because of gas prices, according to a new study from recruitment platform Monster. The finding shows how a military campaign the White House billed as short-lived is now reshaping labor-market behavior at the household level.

The numbers are specific. Of the prospective job movers Monster surveyed, 23% said they are looking for roles closer to home. Another 17% are placing more weight on salary to offset the higher cost of commuting. A further 20% now prioritize fully remote roles, while just 5% are applying for fully in-person positions.

The backdrop is a steady climb in fuel prices. The national average for regular gas sits close to $4.50 a gallon, up from roughly $4.10 a month ago and $3.15 a year ago, according to AAA data cited in the report. Mid-grade now averages a little over $5 a gallon. Diesel exceeds $6.50. Brent crude traded at $105 per barrel on the morning of the report.

Supply disruptions sit at the center of the price surge. Iran borders the Strait of Hormuz, the critical waterway for Persian Gulf oil exports. Ships remain reluctant to pass through the Strait — despite President Trump's previous insistence that the U.S. controls it — and stalled supply is pushing prices higher.

Diplomacy has so far offered little relief. U.S.-Iran talks in New York this week raised hopes of a de-escalation timeline. Iran's President Masoud Pezeshkian told the U.N. on Wednesday that his country would never "bend the knee," while signaling it was ready for "ready for dialogue and diplomacy." Trump said he faced a choice between negotiating or "annihilat[ing]" the regime. Oil markets have priced in the standoff.

The price of twenty extra minutes

For employers, the math gets harder from here. When Monster asked employed Americans what it would take to commute an additional 20 minutes beyond their preferred travel time, 32% said they would need at least a 20% pay increase. Another 10% would accept a 10% raise. Some 11% said a more flexible schedule with hybrid work could persuade them, and 9% would make the trip if their gas were reimbursed in some form.

A hard core will not move at all. Thirty percent of respondents said neither money nor flexibility would tempt them into a longer commute. The survey drew more than 1,000 respondents.

Commuting is already costing companies candidates. Nearly half of employed Americans — 49% — said commuting costs or length have pushed them to turn down a job opportunity. Three-quarters, or 75%, said the rising cost of living has made work-life balance more important to them.

That pressure points toward a longer-term shift in how work is organized. Mark Dixon, CEO of IWG, the world's largest workspace provider, has argued that commuting could be extinct within 15 years. "In the future, you're going to explain to your kids that you used to commute," Dixon previously told Fortune. They'll think it's "mad stuff" that bosses once asked workers to "travel 100 miles to sit down and use a computer."

For now, the market has settled into an equilibrium rather than a revolution. Security provider Kastle Systems, which tracks office occupancy across 10 major U.S. cities including New York, Washington, D.C., Los Angeles and Austin, puts the new normal for office occupancy at 53%.

The so-what for employers is straightforward: with fuel costs baked into career decisions and half of workers already rejecting offers over commuting, companies that insist on long in-office commitments will likely pay for it — in raises, reimbursements or unfilled seats — until oil prices or the conflict break.

Original: gasprices.aaa.com

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Grace Kim

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Market editor covering industry trends and analytics at Business Bearings.

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