Weekly Updates
Weekly Updates
- As pandemic restrictions fade, employers have thrown money at younger people. In the US, wage growth for those under 25 years old is over 2.5 times that of “prime age” workers.
- Why do young people get such large pay rises, when older workers (for example economists) do not? One reason is the competition of social media. Social media content creators and influencers earn money from platforms like TikTok and Instagram. The income comes from advertising (directly or indirectly), subscriptions, or small one-off gifts from fans.
- Social media is an alternative to paid employment. A young micro-influencer with fewer than 10,000 Instagram followers can, just with social media posts, earn half the median income of a young full-time worker and much more than someone working part time. Social media also offers a chance to hit the “big time”. Being a barista does not. A young mega-influencer can earn six times their age group’s median income.
- However, there are signs that social media income growth has slowed post-pandemic. With a rising cost of living and slowing income growth, younger social media content creators may find they need to look for what statisticians consider a real job. That would slow wage growth for young workers. Meantime, please follow me on Twitter and LinkedIn.
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