Gen Z is turning out to be the multiple-job generation. Almost half of young adults now make money outside of salaried work.
That reflects a broader shift in how Americans earn money. Some 54 million people generate earnings from more than one place, up from 41 million two years ago, according to Block Inc.’s Cash App. The growth has been driven by Generation Z, with almost 16% holding multiple jobs, five times the rate of Baby Boomers.
Across Cash App’s customer base, 57% generate income from freelancing, entrepreneurship, content creation, side businesses or multiple jobs. It’s even starting before adulthood. About 22 million teens ages 13 to 17 earn income through part-time, informal or digital work, according to Cash App. Those activities include livestreaming video games, earning money on platforms such as Roblox and reselling goods online.
Demand for tools to manage variable cash flows is likely to grow as younger workers increasingly rely on more than one income stream, according to Owen Jennings, a business lead at Block, who oversees the company’s product, operations and customer-support functions.
“Younger generations are opting for more flexibility and so I think that means the shape of the labor market has changed meaningfully,” Jennings said in an interview. “The way people are participating in the US economy and earning money has fundamentally changed.”
The Cash App study found that many “modern earners” are underserved by traditional financial institutions, which often base products such as credit underwriting and tax services on the assumption that workers receive a single paycheck from one employer. As a result, some are shut out of credit, benefits and homeownership despite having comparable incomes. Just 21% of modern earners on Cash App hold mortgages, versus 32% of salaried workers.
With the Gen Z generation, those born between 1997 and 2012, accounting for 44% of modern earners, Block’s Cash App is increasingly tailoring banking, investing and other money-management tools to younger consumers. Last week, Cash App unveiled a payment device aimed at teens and young adults that looks like a sparkling wand.
Cash App has also introduced credit scores for customers with limited credit histories, which the company says can help expand access to financing. Its Cash App Borrow product offers small, short-term loans designed to help users manage periods of uneven income, according to Jennings.
Joshua writes for Bloomberg.