The CQ: Boomers Love Temu, While Gen Z'ers Increasingly Aren't Working or in School
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By Forerunner
What We’re Talking About on Slack:
Brands are growing more concerned about how they are perceived by ChatGPT. Since large language models pool words and phrases that are commonly used together, the names of brands can become associated with certain terms (ex: the name of a lotion with the word “gentle”). And brands can put new content into the information space in order to influence what AI models have already learned about their brands, catering to what feels like a revamped, AI-driven SEO.
Blood-sugar tracking amongst people without diabetes is one of the latest health trends, via prescriptions for wearable monitors that track how bodies react to different foods and activities. Since the FDA just approved over-the-counter sales of continuous glucose monitors (CGM), they will soon be readily available to all. While this trend can be beneficial in making lifestyle changes for those who are at risk of developing Type 2 diabetes, many doctors say this may lead some people to obsess over their health data, form an unhealthy relationship with food, and misinterpret normal glucose fluctuations. “Part of the confusion for healthy patients who use a CGM is that it isn’t always clear what normal glucose fluctuations look like.”
The Consumer Price Index rose 3.5% from a year ago in March—more than expected. Shelter and energy costs drove the increase: Energy rose 1.1% after jumping 2.3% in February, while shelter costs rose by 0.4% on the month and up 5.7% from a year ago. “The report comes with markets on edge and Fed officials expressing caution about the near-term direction for monetary policy. Central bank policymakers have repeatedly called for patience on cutting rates, saying they have not seen enough evidence that inflation is on a solid path back to their 2% annual goal. The March report likely confirmed worries that inflation is stickier than expected.”
A New Generational Divide Opens Over Cheap Stuff on Temu, according to Wall Street Journal. It’s not necessarily what some would expect, but Temu is surging with America’s 55+ year-old demographic — and their kids aren’t impressed. Last month, Temu’s fastest-growing customer base was the 55 to 64 set, with sales attributed to that age group growing 271% since last March. “As in most bargain shopping, Temu regulars say part of the appeal is stumbling across items they—or anyone—could probably do just fine without.” Kids of these newfound Temu shoppers call their parents “Temu warlocks, addicts, and victims.”
Meet the “disconnected youth,” the growing group of Gen Z’ers who aren’t working or going to school. According to a new report, more than 1 in 3 people aged 18 to 24 have no income at all. In 1990, that number was 1 in 5. Researchers say not having a source of income can have a major impact later in life—a lack of savings may inhibit one’s ability to buy a home, start a business, or even retire. Not working or going to school can also affect one’s mental health and studies show that, as of 2022, younger adults have higher rates of depression than older adults. "This is striking because the labor market in 2022 was the strongest on record, and yet real incomes inclusive of zero-wage young adults remained essentially unchanged as this group made up an increasing proportion of the young adult population."
Side hustles are exploding — and becoming real businesses, according to Bloomberg. Last year, 44% of new business owners in the U.S. launched their businesses while working part- or full-time jobs. In 2022, the percentage was 27%. During the pandemic, when business further shifted online and millions were laid off, many were inspired to seek out entrepreneurship. The number of new businesses in the U.S. today is more than 50% above pre-pandemic levels. Many people are also turning to side hustles to make up for higher prices due to inflation. “With the extra breathing room afforded by flexible work and the time saved from generative AI, the opportunity for people to start businesses as side hustles—and to grow them into something robust and sustainable—is better than ever.”
The U.S. is set for job gains ahead. The Conference Board’s employment trends index increased to 112.84 in March from a revised 111.85 in February. Labor Department figures reveal the U.S. added a higher-than-expected 303,000 more jobs in March, with the unemployment rate falling to 3.8% from 3.9% in February. U.S. employment is expected to strengthen in the short term, and most U.S. chief executives say they intend to grow or maintain their existing workforce, and only 21% expect to lay off employees in 2024.
The calls for help are coming from above the poverty line, say operators of 211 emergency helplines, who report more calls from people who earn too much to be eligible for social services. The federal poverty line, which has barely changed since 2010, hasn’t kept up with the real cost of living and doesn’t adjust for cost differences across the country. For perspective: The federal poverty level for a family of four is $31,200, however estimates of the bare-minimum survival budget for a family of four in that state are $126,000. Estimates of 36 million Americans, or 29% (up 18% from 2010), are what’s called ALICE (Asset Limited, Income Constrained, Employed).
At a time when the cost of college is higher than ever, college admissions have become particularly precarious. For one, the delayed rollout of the revamped Free Application for Federal Student Aid means millions of Americans are picking colleges not knowing if they can afford it. And on the flipside: Elite college admissions have turned students into brands with a highly competitive process that leads students and parents to hire college prep consultants to promote labels like “Committed Athlete” or “Environmentally Conscious Musician.” “This approach can lead to a strong application, but students who brand themselves too early or too definitively risk missing out on the kind of exploration that will prepare them for adult life.”
America’s new age of retirement anxiety: Pretty much everyone is confused on what to expect. A 2023 Gallup poll found 43% of non-retirees said they thought they'd have enough money to live comfortably once they stopped working, and 71% said they were at least moderately worried about being able to pay for their retirement. The financial instability of retirement is leading nearly 20% of Americans 65+ to continue working (double the number that were working 35 years ago) and some are even choosing to un-retire in the face of high costs.
Portfolio Highlights:
Inc.’s Female Founders 250 list recognizes Sika Health CEO Ami Kumordzie and AmplifyMD CEO Meena Mallipeddi.
Eater outlines Wonder’s food-delivery concept, depicting its appeal to fans and opportunity ahead.
WWD recognizes Ritual as one of the main postpartum health solutions for women.
Fora advisor Kim Hannum offers advice on traveling Italy in the off-season to Conde Nast Traveler.
Forbes reports that the beauty community is finding a new home on the Catch app, with quotes from Co-founders Nico Perdomo and Denia Ebersole.