• by Colin Kirkland , Yesterday

A new study issued by the Interactive Advertising Bureau (IAB) highlights the growing digital economy -- which now makes up 18% of the U.S. GDP -- citing a rapid increase in internet-related jobs and the unprecedented rise of creators since 2020. 

In its 17th year, the IAB’s study shows that the digital economy in the U.S. has doubled since 2020, reaching $4.9 trillion in total and driving employment in the country. According to IAB, internet-related jobs are no longer centered in tech hubs, but are spread out around the region, growing 12 times faster than the broader labor market. 

Since 2020 – a turning point in the industry -- the digital economy has expanded 19% annually, compared to the whole U.S. economy, which grew at 7%. In 2008, when IAB began issuing this report, which is conducted every four years, internet-driven employment totaled just 3 million jobs in the U.S. Now, the number is closer to 30 million. 

More than 11 million of those jobs are tied to digital economy work, while another 17 million are based in industries reliant on digital infrastructure, like education, entertainment, banking, retail, public services and more. 

Creators and social media influencers are responsible for driving the fastest job growth in the digital economy.

Right now, there are 1.5 million Americans who identify as full-time digital creators -- eight times as many as in 2020, just five years ago. 

Compared to the traditional media sector, which is expanding at 5% annually, the creator economy is growing at five times that rate.

“The creator economy has clearly become a major factor in the digital growth story, driving spend, engagement, culture, and of course, employment,” says IAB CEO David Cohen. “The impact is felt across the ecosystem, shifting the way that we think about information, entertainment, commerce, and community. In some ways, it has become a self-fulfilling prophecy. The more that creators succeed, the stronger the platforms they use become.”

Cohen adds that the digital economy has become “a foundational part of American GDP,” with the emergence of more AI-powered technology destined to further boost the importance of the sector. Cohen argues that it is time for more policymakers and regulators to pass legislation that ensures that the appropriate foundation and infrastructure is in place to prioritize continued innovation within the space.