Economics/Class Relations

The Forever Labor Shortage

May 21, 2023
Hi, I’m Matt Turner, the editor in chief of business at Insider. Welcome back to Insider Today’s Sunday edition, a roundup of some of our top stories.


On the agenda:

But first: More than 500,000 Insider readers turned to a story revealing a parenting hack at Target. Read on for more on the hack and the possible strategy behind it.
If this was forwarded to you, sign up here.

Target’s perk for parents

Mary Meisenzahl/Insider
Kids grow up fast. Literally. My three-year-old daughter seems to grow out of a new set of clothes with each season. That phenomenon helps explain the huge interest in my colleague Dominick Reuter’s story this week on a parenting hack at Target.

The retail giant offers one-year returns on own-brand items, including Cat & Jack children’s clothing. Parents have taken to TikTok to share their stories of returning items to Target, no matter if they’re stained, ripped, or simply too small.

Target’s chief growth officer, Christina Hennington, highlighted the kids brand on the company’s earnings call on Wednesday, emphasizing the returns policy and noting Cat & Jack is now generating $3 billion in sales a year.

The policy is also striking as a business strategy. The returns are conducted in store, helping generate additional foot traffic and giving Target a chance to sell parents craft supplies, groceries, or a soda at the checkout every time they return their kid’s clothes.


The Forever Labor Shortage

Arif Qazi/Insider
We’ve got great news for everyone. A labor shortage is coming that’s going to bring workers faster promotions, bigger salaries, and better benefits — and it’s all because of the coming surge in baby-boomer retirement.

For decades, companies have enjoyed a never-ending supply of workers. But now that baby boomers are retiring in droves, there’s about to be an all-out competition for workers.

Read the full story.

‘The flattening’
Drew Angerer/Getty Images
Just one month after Meta’s layoff “bloodbath,” employees are bracing for even more cuts.

As part of Meta’s “Year of Efficiency,” Mark Zuckerberg sought to “flatten” the company’s org structure and remove layers of middle management — and it seems he is doing exactly that.

In recent weeks, a stream of longtime executives have announced their departures. They are all part of Meta’s business division, which is expected to lay off 6,000 people next week.

More on the high-profile departures.

Big bankruptcy surge
Craig Barritt/Getty Images for VICE Media
Vice Media headlined a group of seven major companies that all filed for bankruptcy in the span of 48 hours. The filings show just how exposed highly indebted firms are in the wake of interest-rate hikes.

Data from Moody’s and S&P Global suggest the pain could just be getting underway — and could last all year.

What to know.

Also read:

Cheap Chinese EVs are coming
ERIC PIERMONT / Getty Images; Arif Qazi / Insider
After years of preparation, Chinese car companies are poised to upend the US electric-vehicle market.

On their home turf, Chinese companies have already vanquished their American competitors, eating up market share from the likes of Ford and General Motors.

Industry watchers said it’s only a matter of time before Chinese automakers bring their impressive — and importantly, inexpensive — electric cars to the US.

Our full report here.

Plus, check out:

“Drink the Kool-Aid.”
— Sebastian Thrun, CEO of Kittyhawk, the flying-car company funded by the Google cofounder Larry Page, during an all-hands meeting in April 2022, in leaked audio.

Putin’s bunker, home prices, & more


Keep up with Insider

  • Get Insider’s app and notifications to be the first to find out about the stories you want to know — from tech to business. Download it here.
  • Become an Insider subscriber to get actionable, high-value news and insights to improve your career, company, and community. Subscribe here.
  • Want more of Insider in your inbox? Sign up for our newsletters here.

Leave a Reply