Tech Layoffs Fuel Gen Z’s Social Media Side Hustle Boom

Facing tech layoffs and a tough job market, many Gen Z and millennial workers are turning their social media side hustles into real income streams.

Job cuts in tech have left a new generation of workers anxious – but also resourceful. Rather than pin all hopes on corporate careers, young professionals are building backup plans on social media. They’re growing YouTube channels, TikTok followings, and personal brands that can generate income when the 9-to-5 falls through. This trend, highlighted by recent layoffs, signals a shift toward the creator economy as a safety net.

From Layoff to Likes: A New Career Lifeline

When Los Angeles-based tech worker Chloe Shih, 32, was laid off in early 2024, she didn’t expect Instagram to become her livelihood. Shih had been sharing tech career advice online as a passion project. After losing her job, she doubled down on posting – and one viral series (“30 Lessons by 30”) sent her following soaring to 800,000 . Within two years, her content side hustle earned over $100,000 (mostly through brand sponsorships) and eventually brought in $250,000, roughly matching her former tech salary . Her story is not an outlier; it’s an example of a wider trend unfolding among young professionals.

Tech layoffs have hit unprecedented levels, shattering the myth of a “safe” corporate tech job. Between 2022 and 2024, over 500,000 tech employees were laid off globally . This wave of cuts, from big names like Meta and Amazon to startups, blindsided many early-career workers who once saw tech as secure. Gen Z and millennials, in particular, have faced repeated economic shocks – a pandemic, inflation, and now AI-driven upheaval – that make traditional career paths less certain . In a recent World Economic Forum study, entry-level job listings worldwide had fallen by 29% since January 2024 , meaning new grads are competing fiercely for fewer roles. “The goalpost keeps shifting,” as one expert put it, and trust between employees and employers has broken down . In short, young workers no longer assume their day job will be there tomorrow.

Why Gen Z Is Embracing Side Hustles

Amid this insecurity, Gen Z and millennials are proactively creating plan B. A 2024 Glassdoor–Harris poll found that 39% of U.S. employees have a side hustle for extra income – and the numbers skyrocket to 57% for Gen Z and 48% for millennials . In other words, over half of working Gen Z are already juggling gigs outside their day job. And it’s not just to earn more cash; it’s about having a safety net and creative outlet in case the main job disappears.

Surveys show this generation values flexibility and multiple income streams. According to Intuit’s 2025 Prosperity Index report, 26% of 18–25 year-olds are already working a secondary job and 56% plan to have two or three income streams in the next five years . Many young professionals watched parents or older peers struggle after layoffs, and they’re determined not to be caught off guard. Side hustle culture is booming, with entrepreneurship, freelancing, and content creation all on the rise. In fact, new business applications in the U.S. have surged nearly 50% since 2019 . The message is clear: relying on one employer feels risky, so Gen Z is seeking more control over their livelihood.

Social media has become the go-to platform for these backup plans. Gen Z grew up on TikTok, YouTube, and Instagram, so turning content into income feels natural. They’re comfortable leveraging social networks to monetize skills and hobbies . Whether it’s posting coding tutorials on YouTube or fashion advice on TikTok, young Americans see social media as an opportunity their parents never had. “Make use of the technology we have,” as one financial advisor put it, to develop your personal brand and create security for yourself . Plus, the potential payoff is tempting: brands spent an estimated $6 billion on influencer marketing in 2023 , and companies are eager to partner with relatable online creators.

Importantly, most people start these hustles long before quitting any day job. About 58% of content creators still work full-time elsewhere . Building an audience can take years, and many creators initially treat it as a nights-and-weekends gig (just as Chloe Shih did). The upside is that if a layoff comes, a well-nurtured side hustle can quickly shift from a hobby to a paycheck.

The Upside: Turning Content into Income

The creator economy – the ecosystem of influencers, bloggers, podcasters, and online educators – offers a viable second income for those willing to put in the work. Successful content creators earn money through multiple channels: brand sponsorships, ad revenue from platforms like YouTube, affiliate marketing links, fan subscriptions, merchandise, online courses, and more. Even modest followings can generate a few hundred extra dollars a month, while top influencers make millions. For example, niche YouTubers have turned channels about makeup, coding, or personal finance into lucrative micro-businesses.

Crucially, you don’t need to be a celebrity. The vast majority of creators have relatively small audiences – 67% have under 10,000 followers  – yet many still monetize successfully. Often a tight-knit, engaged community is more valuable than huge follower counts. There are even creators with only a few thousand fans earning significant income by selling specialized products or services. The barrier to entry is low: if you have a smartphone and expertise or passion to share, you can start creating content today at virtually no cost.

Another advantage is the personal growth and networking that come with content creation. Running a YouTube channel or TikTok forces you to learn marketing, communication, and business skills that enhance your resume. Some laid-off tech workers say their side projects helped them land new jobs, because it showed initiative and built a public portfolio of work. In that sense, a side hustle can be a career asset even if it doesn’t replace your salary overnight.

Reality Check: The Risks of Social Media Careers

Before you ditch your day job to become a full-time influencer, a reality check is in order. Making a living online is possible, but far from guaranteed. The creator economy is a long tail: a tiny percentage of creators earn a lion’s share of the money, while most struggle to break even. One study found only about 4% of content creators make over $100,000 a year, and the vast majority earn less than $1,000 annually . In fact, more than half of full-time creators earn below the U.S. living wage of $44,000 , despite putting in entrepreneurial levels of effort. These aren’t encouraging odds if your plan is to get rich on YouTube.

Income from social media can be highly unpredictable. Creators trade the stability of a paycheck for the volatility of platform algorithms and fickle audience attention. Ad revenue can fluctuate month to month. Sponsorship deals – which, for many influencers, make up the bulk of income – are never guaranteed. Chloe Shih learned that “sponsorships can ebb and flow… you never know when you’re going to get it” . A change in a platform’s algorithm or advertising policy can suddenly throttle a creator’s earnings. For example, an update to YouTube’s recommendation system might cause views (and ad dollars) to drop sharply with little warning.

There’s also intense competition. Millions of people are trying to “make it” as creators, which means it takes consistent quality and a bit of luck to stand out. Burnout is common, as building an audience often requires pumping out content relentlessly. Creators must wear many hats – not just entertainer or educator, but also marketer, video editor, customer service rep, and business manager. It’s a far cry from the glamor that the word “influencer” suggests. Many passion projects remain just that – passions, not profits.

That said, these risks can be managed with the right approach (and a healthy dose of realism). Some creators mitigate income swings by diversifying their revenue streams – for instance, launching a product line or offering paid consulting alongside ad and sponsor income. Others keep a part-time job or freelance gig for stability. As Shih notes, a huge following doesn’t automatically equal big earnings, and vice versa: there are people “with huge followings that don’t make anything, and people with small followings who make quite a bit” . The key is treating content creation like a business – experimenting, learning what your particular audience values, and not banking on a single platform or sponsor.

Building Your Personal Brand Safely: Practical Steps

You don’t need to wait for a pink slip to start creating your safety net. In fact, the best time to lay the groundwork for a personal brand or side hustle is before you need it. Here are some concrete steps to consider to make sure your leap into the creator economy is on solid footing:

1. Build an audience before you need it. Begin creating content and growing a community while you’re still employed. This gives you time to experiment and find your niche without the pressure of immediate monetization. As one creator puts it, “build a community first; income is not always guaranteed” . Even posting once a week can establish your presence. Think of it as career insurance – you’re developing an asset (your personal brand) that can pay off down the road.
2. Test your idea’s profitability. Don’t rush to quit your job; make sure your side hustle can actually make money on a small scale. Try landing a few paid gigs or sponsorships to gauge interest. Sell a simple product or service to your followers to see if it resonates. The goal is to validate that people value what you’re offering. As financial experts advise, prove your concept works and generates revenue before you consider taking it full-time .
3. Diversify your income streams. Relying on one platform or one sponsor for all your earnings is risky – algorithms change and sponsors come and go. Aim to develop multiple revenue streams from your content. For example, combine sponsorships with ad revenue, affiliate product links, a Patreon membership, or your own merchandise. Many creators also cross-post on several platforms (e.g. Instagram and YouTube) to broaden their reach. Diversification means you’re not putting all your eggs in one basket, making your creator business more resilient.
4. Plan for sponsorship ups and downs. If brand deals are a goal, understand the industry and have a backup plan for lean periods. Treat sponsorships as a bonus, not a guarantee. Negotiate long-term partnerships where possible, and maintain relationships with multiple sponsors or clients. Keep an eye on trends in the creator space – for instance, if advertisers pull back spending, be ready to lean more on other income sources temporarily. In short, hope for the best but plan for variability .
5. Keep an emergency fund and budget wisely. Just as you would before starting any business, save a financial cushion if you’re planning to transition to content creation full-time. Experts recommend having a few months of living expenses saved up . This buffer reduces stress and gives you time to grow your income. Also, when money does start coming in from your side hustle, manage it carefully – set aside funds for taxes, business expenses, and slow months. A solid emergency fund and sensible budgeting can spell the difference between a rough patch and a personal financial crisis.

By taking these steps, you can approach the creator economy not as a desperate last resort, but as a strategic career move. The allure of being your own boss and earning money doing what you love is real – and for a growing number of young professionals, it’s proven to be life-changing. But as with any venture, preparation and prudence are your friends. Tech layoffs may have been the shock that sparked this movement, but the skills and income streams you build online can benefit your career in good times and bad. In an uncertain job market, cultivating your own platform is an empowering way to take back control. You’re investing in you – an asset that can’t be downsized.

Sources

• Reuters – “Laid off from her tech job, social media became her safety net.” Reuters, Dec 4, 2025. URL: https://www.reuters.com/lifestyle/laid-off-her-tech-job-social-media-became-her-safety-net-2025-12-04/
• Glassdoor – “Workplace Trends 2025: Side hustle culture fuels new paths to career growth.” Glassdoor Blog, Nov 19, 2024. URL: https://www.glassdoor.com/blog/worklife-trends-2025/
• World Economic Forum – “Gen Z face a more competitive job market than their predecessors.” WEF/Randstad report, Sep 24, 2025. URL: https://www.weforum.org/stories/2025/09/gen-z-are-competitive-job-market-randstad/
• Intuit – “Intuit Prosperity Index 2025: Life-ing Edition.” Intuit Blog, May 8, 2025. URL: https://www.intuit.com/blog/innovative-thinking/2025-intuit-prosperity-index/
• Net Influencer – “Over Half Of Full-Time Creators Earn Below U.S. Living Wage… (2025 Creator Earnings Report).” NetInfluencer.com, Jul 15, 2025. URL: https://www.netinfluencer.com/over-half-of-full-time-creators-earn-below-us-living-wage-despite-250b-industry-neoreach-finds/
• The Leap – “40 Creator Economy Statistics You Need To Know in 2025.” TheLeap.co, 2025. URL: https://www.theleap.co/blog/creator-economy-statistics/
• Alitu – “How Much Do Content Creators Make? A Realistic Guide for Beginners.” Alitu (The Podcast Host), Oct 21, 2024. URL: https://alitu.com/creator/monetization/realistic-guide-to-creator-earnings/
• UW News – “Q&A: The ‘cruel optimism’ of tech industry layoffs.” University of Washington News, May 14, 2025. URL: https://www.washington.edu/news/2025/05/14/tech-industry-layoffs/