The CQ: Parents Risk Retirement to Support Children & The Year Millennials Aged Out of the Internet
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By Forerunner
What We’re Talking About on Slack:
Shoppers kept spending this holiday season with a 6.3% boost year over year in online sales and a 2.2% increase of in-store sales. The strongest category was restaurants, while electronics and jewelry were among the weakest. One research firm estimated that the Saturday before Christmas was the biggest shopping day of the year, with $47 billion in sales—$2 billion more than expected—beating Black Friday.
The Wall Street Journal maps out where the job market is heading in 2024. TLDR: Economists predict hiring will “slow considerably.” At the end of 2023, we saw a more stable job market, as there was a larger pool of available workers, people stopped job hopping as much, and although employers hired less, layoffs were minimal. Still, there are signs of a downturn, including less temporary hiring, wages cooling, and while job growth increased in a few key fields (healthcare and social assistance, leisure and hospitality, and state and local government), it dropped significantly in other industries. In another article published just two days later, WSJ reports that it’s already getting harder to find a job. According to data from Indeed, the total number of job postings declined more than 15% from a year earlier, meanwhile the Labor Department’s data through November revealed that there were 8.8 million job openings, down from the March 2022 peak of 12 million.
Parents are risking their retirements to support their adult children who have been struggling to make it on their own due to the high cost of living, lack of affordable housing, and student loan debts. According to a Merrill Lynch study, American parents spend about $500 billion every year on their 18- to 34-year-old children—double the amount they put towards retirement. About 65% of U.S. parents are letting their children live at home, nearly half are covering their bills, 23% are paying their rent, and another 23% are doling out an allowance. “I thought at this point my kids would be working good jobs, but I’m constantly using up my savings to help them progress.”
Covid slashed consumer choices—pretty much for good. During the product shortages and logistics issues of 2020, many companies streamlined their product lines to the most in-demand items that could be easily produced. And it looks like that strategy has stuck beyond the pandemic. These days, only about 2% of products in stores are new, as opposed to 5% in 2019. And in major grocery stores, fresh produce, dairy, and deli meats has been reduced by 15% to 20%. Executives have found that the cutbacks help increase their profitability in the midst of higher interest rates and rising costs for raw materials and labor—and consumers have largely been O.K. with not having to wade through so many extra options. “Today, people would rather lose a portion of consumer demand as opposed to spending extra on too much variety.”
Introducing Gen Alpha, “a landmark generation.” Axios breaks down the stats on this generation born between 2010 and 2024 that is expected to be the largest in history at more than 2 billion. Known as “iPad kids,” the older ones had their first smartphone at age 9, have lived through a global pandemic, virtual schooling, and the hottest years on record. "Alpha have only ever known a world of the blurring of AI and the human.”
We aren’t posting on social media as much anymore, according to The Wall Street Journal. An October report found that 61% of American adults with a social-media account said they’ve become more selective about what they post. Another survey from this past summer revealed that more than half of its respondents believed the quality of social media has declined in the past five years. When feeds are full of ads, suggested posts, and bots instead of familiar faces, the community is no longer there. More and more users are opting for a passive social media experience, viewing it as entertainment, and sharing their private lives through DMs or group chats.
On that note, The New York Times writes this is the year millennials aged out of the internet: “I suspect there is another factor driving the alienation and discomfort felt by many of the people who feel as though the internet is dying before our eyes: We’re getting old.” While millennials were historically the leaders in screen time and the early adopters of technology and social media, today only 42% of 30-to-49-year-olds say they’re online “almost constantly,” compared with 49% of 18-to-29-year-olds. “If the internet is no longer fun for millennials, it may simply be because it’s not our internet anymore. It belongs to zoomers now.”
The New York Times sues OpenAI and Microsoft over AI use of uncompensated, copyrighted work, claiming millions of articles were used to train their generative AI, which will then create similar content as The Times and steal their audience. It’s during times of technological change (remember Napster?) when copyright law gets reexamined, and artificial intelligence is the latest advancement that’s pushing boundaries. Actress Sarah Silverman, Getty Images, as well as a group of authors including Jonathan Franzen and John Grisham have separately sued AI companies over unauthorized use of intellectual property. NYT has said in its complaint, “If The Times and other news organizations cannot produce and protect their independent journalism, there will be a vacuum that no computer or artificial intelligence can fill. Less journalism will be produced, and the cost to society will be enormous.”
The rise of the forever renters: They are high earners with a taste for high-end amenities without any of the burdens of homeownership—and luxury rental buildings and build-to-rent subdivisions designed to look like single-family homes are cropping up nationwide to appeal to them. According to the census bureau, the number of renter households with incomes of more than $1 million reached a peak of 4,453 in 2022—over four times as many in 2017—and the number of renters earning over $200,000 a year is up fourfold since 2010. “We thought this was going to be a transition to owning, but in fact it’s not, it’s become a lifestyle choice,” says one subdivision executive who claims tenants who sign two-year leases renew their contracts 80% of the time.
Above-average temperatures ruled 2023, but 2024 may be the hottest year in recorded history. Global warming started accelerating in the 1970s and has recently been picking up speed. "If things follow the normal pattern, 2024 should be a bit hotter than 2023. But 'the normal pattern' may not exist anymore." Several climate scientists point to the strong El Niño event in the tropical Pacific Ocean as a harbinger that hotter temps are on the horizon, though others are doubtful of El Niño’s intensity, yet note that 2024 will still likely be among the hottest.
Portfolio Highlights:
The Oura ring is named one of Fortune’s top recommended products for your health and wellness in 2024.
E-design’s next chapter, with a nod to The Expert’s Marketplace launch, was one of Business of Home’s stories that defined the home industry in 2023.
Melanie Goldey, CEO of Tally Health, is one of the nine longevity experts offering advice on healthy habits as you age in Fortune.
Modern Retail profiles the founders of Prose and IQBar on how their companies found profitability, with quotes from Arnaud Plas, co-founder and CEO.
Narvar Chief Customer Officer Anisa Kumar is quoted in a CBS News story on holiday returns.
Along with other executives, Ari Bloom, CEO and founder of A-frame Brands, shares his thoughts on upcoming beauty industry trends with Glossy.
Roya Shariat, the director of social impact and communications at Glossier, is quoted in a New York Times story on the challenges facing Black beauty founders.
AP News reports on the new updates in subscription-based care including Hims’ weight loss program.
Ritual founder and CEO Kat Schneider tells New York’s The Cut the beauty products she uses to the last drop. She also shares her New Year’s resolutions with Inc along with 14 other founders.
Abbie Synan, a Fora Travel advanced advisor, is quoted in Elle Décor speaking about the world’s most iconic hotels.