The potential closure of TikTok in the United States, due to security and data privacy concerns, has generated great uncertainty among users, content creators, and companies that rely on the platform for promotion and visibility. With more than 100 million active users in the country, TikTok has established itself as one of the most influential social networks, especially among young people. But beyond the debate over digital security, the closure of this platform could have significant implications on the US labor market and the digital economy.

The Growth of Freelance Work and the Creator Economy

TikTok is not just a social network; it has become a key platform for the creator economy. Many users, especially those who create viral or commercial content, have found in TikTok a significant source of income through sponsorships, affiliate marketing, and direct advertising. According to data from various agencies, more than 1.5 million creators in the United States generate income through the platform, which represents a significant part of the freelance sector.

The closure of TikTok could force many of these creators to look for new forms of income, which could lead to an increase in competition on other platforms, such as Instagram, YouTube, or new alternatives. While some creators could redirect their audience to these platforms, not all creators would be successful in this transition. This could result in a decrease in job opportunities for those who depend on TikTok for their livelihood.

Impact on Small Businesses and Digital Marketing

TikTok has also become a fundamental tool for small businesses that take advantage of the platform to reach a massive audience. With its short video format, brands have found an accessible way to advertise effectively with modest budgets. The closure of TikTok would directly affect these companies, which would lose a low-cost, high-impact marketing channel.

This change could lead to an adjustment in digital marketing strategies, and small businesses that rely on this platform would have to invest more in traditional advertising or more expensive social media platforms. This could lead to a restructuring of marketing teams, and in some cases, a reduction in staff, as small businesses may not have sufficient resources to quickly adapt to changes.

Increased Competition in the Labor Market

The closure of TikTok could lead to a redistribution of workers in sectors of the digital economy. Competing social media platforms, such as Instagram and YouTube, would likely see an increase in demand for creators and digital marketers, leading to more competition in the labor market. At the same time, many creators could look for other ways to monetize their content, such as developing their own website or selling products and services. This could result in increased competition in these niches, with both positive and negative implications for workers.

Impact on Innovation and Entrepreneurship

TikTok has been a platform that has fostered innovation, from new forms of creative expression to the creation of digital businesses and startups. Many entrepreneurs have used TikTok to promote their products, build community, and generate sales. Its closure could leave many of these entrepreneurs feeling disoriented and forced to find new ways to connect with their audience. In a less favorable scenario, this could reduce the pace of innovation in some sectors, affecting the growth of digital entrepreneurship.

5. Adjustments in the Entertainment and Advertising Industry

The closure of TikTok would also affect the digital entertainment and advertising industry. Brands, advertising agencies and content producers that have been focusing on creating campaigns on TikTok may have to redirect their efforts to other platforms, which could result in an increase in demand for specialists on these networks. This, in turn, could generate more employment in areas such as content production, data analysis, and advertising campaign management.

The possible closure of TikTok in the United States is not only a data security issue, but has profound ramifications on the country's digital economy and labor market. As people who rely on the platform for income look for new sources of employment, we could see aincreased competition for positions on other platforms, an adjustment in digital marketing strategies, and a reconfiguration of the creator economy. In addition, the impact could be felt in innovation and entrepreneurship, as many entrepreneurs would be forced to adapt to new channels. The closure of TikTok would be a wake-up call for the future of social platforms and their role in shaping the global labor market.

César Sandoval

CTO Data Labs