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Economic Scorecard: Biggest Numbers May Not Be Best, for Now

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Economic Scorecard: Biggest Numbers May Not Be Best, for Now

In relation to the financial system, extra is often higher.

Larger job positive aspects, sooner wage progress and extra shopper spending are all, in regular instances, indicators of a wholesome financial system. Development may not be enough to make sure widespread prosperity, however it’s needed — making any lack of momentum a worrying signal that the financial system might be dropping steam or, worse, headed right into a recession.

However these usually are not regular instances. With almost twice as many open jobs as accessible staff and corporations struggling to satisfy report demand, many economists and policymakers argue that what the financial system wants proper now just isn’t extra, however much less — much less hiring, much less wage progress and above all much less inflation, which is working at its quickest tempo in 4 many years.

Jerome H. Powell, the Federal Reserve chair, has referred to as the labor market “unsustainably scorching,” and the central financial institution is elevating rates of interest to attempt to cool it. President Biden, who met with Mr. Powell on Tuesday, wrote in an opinion article this week in The Wall Road Journal {that a} slowdown in job creation “gained’t be a trigger for concern” however would fairly be “an indication that we’re efficiently transferring into the following part of restoration.”

“We wish a full and sustainable restoration,” mentioned Claudia Sahm, a former Fed economist who has studied the federal government’s financial coverage response to the pandemic. “The explanation that we will’t take the victory lap proper now on the restoration — the explanation it’s incomplete — is as a result of inflation is simply too excessive.”

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However a cooling financial system carries its personal dangers. Regardless of inflation, the restoration from the pandemic recession has been among the many strongest on report, with unemployment falling quickly and incomes rebounding quickest for these on the backside. If the restoration slows an excessive amount of, it may undo a lot of that progress.

“That’s the needle we’re attempting to string proper now,” mentioned Harry J. Holzer, a Georgetown College economist. “We wish to quit as few of the positive aspects that we’ve made as attainable.”

Economists disagree about one of the best ways to strike that steadiness. Mr. Powell, after taking part in down inflation final yr, now says reining it in is his prime precedence — and argues that the central financial institution can achieve this with out chopping the restoration quick. Some economists, notably on the correct, need the Fed to be extra aggressive, even on the danger of inflicting a recession. Others, particularly on the left, argue that inflation, whereas an issue, is a lesser evil than unemployment, and that the Fed ought to due to this fact pursue a extra cautious method.

However the place progressives and conservatives largely agree is that evaluating the financial system will likely be notably troublesome over the following a number of months. Distinguishing a wholesome cool-down from a worrying stall would require trying past the indications that usually make headlines.

“It’s a really troublesome time to interpret financial knowledge and to even perceive what’s taking place with the financial system,” mentioned Michael R. Pressure, an economist with the American Enterprise Institute. “We’re getting into a interval the place there’s going to be tons of debate over whether or not we’re in a recession proper now.”

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The roles report for Could, which the Labor Division will launch on Friday, will present a case research within the issue of decoding financial knowledge proper now.

Ordinarily, one quantity from the month-to-month report — the general jobs added or misplaced — is sufficient to sign the labor market’s well being. That’s as a result of more often than not, the driving power within the labor market is demand. If enterprise is robust, employers will need extra staff, and job progress will speed up. When demand lags, then hiring slows, layoffs mount and job progress stalls.

Proper now, although, the limiting issue within the labor market just isn’t demand however provide. Employers are keen to rent: There have been 11.4 million job openings on the finish of April, near a report. However there are roughly half one million fewer individuals both working or actively searching for work than when the pandemic started, leaving employers scrambling to fill accessible jobs.

The labor power has grown considerably this yr, and forecasters count on extra staff to return because the pandemic and the disruptions it induced proceed to recede. However the pandemic may have pushed longer-lasting shifts in Individuals’ work habits, and economists aren’t certain when or below what circumstances the labor power will make an entire rebound. Even then, there may not be sufficient staff to satisfy the terribly excessive degree of employer demand.

Most forecasters count on the report on Friday to indicate that job progress slowed in Could. However that quantity alone gained’t reveal whether or not the mismatch between provide and demand is easing. Slowing job progress coupled with a rising labor power might be an indication that the labor market is coming again into steadiness as demand cools and provide improves. However the identical degree of job progress with out a rise within the provide of staff may point out the alternative: that employers are having an much more troublesome time discovering the assistance they want.

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Many economists say they are going to be watching the labor power participation price — the share of the inhabitants both working or searching for work — simply as carefully because the headline job progress figures in coming months.

“One can unambiguously root for greater labor power participation,” mentioned Jason Furman, a Harvard economist who was an adviser to President Barack Obama. “Past that, nothing else is unambiguous.”

One other quantity will likely be getting a variety of consideration from economists, policymakers and traders: wage progress.

Employers have responded to the new competitors for staff precisely the best way Econ 101 says they need to, by elevating pay. Common hourly earnings had been up 5.5 % in April from a yr earlier, greater than twice the speed they had been rising earlier than the pandemic.

Usually, sooner wage progress can be excellent news. Persistently weak pay will increase had been a bleak hallmark of the lengthy, gradual restoration that adopted the final recession. However even some economists who bemoaned these sluggish positive aspects on the time say the present price of wage progress is unsustainable.

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“That’s one thing that we’re used to saying fairly unequivocally is nice, however on this case it simply raises the danger that the financial system is overheating additional,” mentioned Adam Ozimek, chief economist of the Financial Innovation Group, a Washington analysis group. So long as wages are rising 5 or 6 % per yr, he mentioned, it is going to be all however unimaginable to convey inflation all the way down to the Fed’s 2 % goal.

Fed officers are watching carefully for indicators of a “wage-price spiral,” a self-reinforcing sample wherein staff count on inflation and due to this fact demand raises, main employers to extend costs to compensate. As soon as such a cycle takes maintain, it may be troublesome to interrupt — a prospect Mr. Powell has cited in explaining why the central financial institution has turn out to be extra aggressive in combating inflation.

“It’s a danger that we merely can’t run,” he mentioned at a information convention final month. “We are able to’t permit a wage-price spiral to occur. And we will’t permit inflation expectations to turn out to be unanchored. It’s simply one thing that we will’t permit to occur, and so we’ll have a look at it that approach.”

Some economists, particularly on the left, say there may be little proof that wage progress is feeding inflation, not to mention {that a} wage-price spiral is creating. They contend that the current pay positive aspects mirror a uncommon second of employee energy within the labor market, and that the Fed can be unsuitable to snuff it out.

However wages, on common, aren’t maintaining with inflation, which means that many staff are dropping floor regardless of the sturdy labor market. For staff to prosper, their wages must be rising after adjusting for inflation — which nearly definitely requires inflation to come back down.

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“What individuals are feeling is actual,” mentioned Darrick Hamilton, an economist on the New College in New York. “A wage enhance that’s not as excessive as the rise within the worth of milk doesn’t make you higher off.”

Mr. Hamilton argues that the Fed is correct to attempt to rein in inflation, however that it must design its insurance policies with the popularity that it is going to be Black staff, together with different deprived teams, who are suffering most if the restoration falters. “The query that we needs to be asking is who bears the burden” of the Fed’s insurance policies, he mentioned.

Traditionally, even small will increase within the unemployment price have nearly all the time signaled the beginning of a recession. Ought to that relationship maintain within the present atmosphere, it means that if policymakers wish to tame inflation with out inflicting a downturn, they must discover a solution to cool off the labor market with out inflicting numerous layoffs.

Mr. Powell and different officers argue that’s attainable, partly as a result of so many roles can be found proper now. In a speech in Germany this week, Christopher J. Waller, a Fed governor, argued that as demand slows, employers are prone to begin posting fewer jobs earlier than they flip to layoffs. That might end in slower wage progress — since with fewer employers attempting to rent, there will likely be much less competitors for staff — and not using a massive enhance in unemployment.

“I feel there’s room proper now for inflation to come back down a major quantity with out unemployment developing,” mentioned Mike Konczal, an economist on the Roosevelt Institute.

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The Fed’s efforts to chill off the financial system are already bearing fruit, Mr. Konczal mentioned. Mortgage charges have risen sharply, and there are indicators that the housing market is slowing because of this. The inventory market has misplaced nearly 15 % of its worth for the reason that starting of the yr. That lack of wealth is prone to lead not less than some customers to tug again on their spending, which is able to result in a pullback in hiring. Job openings fell in April, although they remained excessive, and wage progress has eased.

“There’s a variety of proof to counsel the financial system has already slowed down,” Mr. Konczal mentioned. He mentioned he was optimistic that the USA was on a path towards “normalizing to an everyday good financial system” as an alternative of the boomlike one it has skilled over the previous yr.

However the factor about such a “mushy touchdown,” as Fed officers name it, is that it’s nonetheless a touchdown. Wage progress will likely be slower. Job alternatives will likely be fewer. Staff may have much less leverage to demand versatile schedules or different perks. For the Fed, attaining that final result with out inflicting a recession can be a victory — but it surely may not really feel like one to staff.

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Biden Administration Adopts Rules to Guide A.I.’s Global Spread

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Biden Administration Adopts Rules to Guide A.I.’s Global Spread

The Biden administration issued sweeping rules on Monday governing how A.I. chips and models can be shared with foreign countries, in an attempt to set up a global framework that will guide how artificial intelligence spreads around the world in the years to come.

With the power of A.I. rapidly growing, the Biden administration said the rules were necessary to keep a transformational technology under the control of the United States and its allies, and out of the hands of adversaries that could use it to augment their militaries, carry out cyberattacks and otherwise threaten the United States.

Tech companies have protested the new rules, saying they threaten their sales and the future prospects of the American tech industry.

The rules put various limitations on the number of A.I. chips that companies can send to different countries, essentially dividing the world into three categories. The United States and 18 of its closest partners — including Britain, Canada, Germany, Japan, South Korea and Taiwan — are exempted from any restrictions and can buy A.I. chips freely.

Countries that are already subject to U.S. arms embargoes, like China and Russia, will continue to face a previously existing ban on A.I. chip purchases.

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All other nations — most of the world — will be subject to caps restricting the number of A.I. chips that can be imported, though countries and companies are able to increase that number by entering into special agreements with the U.S. government. The rules could rankle some foreign governments: Even countries that are close trading partners or military allies of the United States, such as Mexico, Switzerland, Poland or Israel, will face restrictions on their ability to purchase larger amounts of American A.I. products.

The rules are aimed at stopping China from obtaining from other countries the technology it needs to produce artificial intelligence, after the United States banned such sales to China in recent years.

But the regulations also have broader goals: having allied countries be the location of choice for companies to build the world’s biggest data centers, in an effort to keep the most advanced A.I. models within the borders of the United States and its partners.

Governments around the world, particularly in the Middle East, have been pumping money into attracting and building enormous data centers, in a bid to become the next center for A.I. development.

Jake Sullivan, President Biden’s national security adviser, told reporters on Sunday that the rule would ensure that the infrastructure for training the most advanced artificial intelligence would be in the United States or in the jurisdiction of close allies, and “that capacity does not get offshored like chips and batteries and other industries that we’ve had to invest hundreds of billion dollars to bring back onshore.”

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Mr. Sullivan said the rule would provide “greater clarity to our international partners and to industry,” while countering national security threats from malicious actors that could use “American technologies against us.”

It will be up to the Trump administration to decide whether to keep the new rules or how to enforce them. In a call with reporters on Sunday, Biden administration officials said that the rules had bipartisan support and that they had been in consultations with the incoming administration about them.

Though companies in China have begun to develop their own A.I. chips, the global market for such semiconductors is dominated by U.S. companies, particularly Nvidia. That dominance has given the U.S. government the ability to regulate the flow of A.I. technology worldwide, by restricting U.S. company exports.

Companies have protested those limitations, saying the restrictions could hamper innocuous or even beneficial types of computing, anger U.S. allies and ultimately push global buyers into buying non-American products, like those made by China.

In a statement, Ned Finkle, Nvidia’s vice president for government affairs, called the rule “unprecedented and misguided” and said it “threatens to derail innovation and economic growth worldwide.”

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“Rather than mitigate any threat, the new Biden rules would only weaken America’s global competitiveness, undermining the innovation that has kept the U.S. ahead,” he said. Nvidia’s stock dipped nearly 3 percent in premarket trading on Monday.

Brad Smith, the president of Microsoft, said in a statement that the company was confident it could “comply fully with this rule’s high security standards and meet the technology needs of countries and customers around the world that rely on us.”

In a letter to Congressional leadership on Sunday that was viewed by The New York Times, Jason Oxman, the president of the Information Technology Industry Council, a group representing tech companies, asked Congress to step in and use its authority to overturn the action if the Trump administration did not.

John Neuffer, the president of the Semiconductor Industry Association, said his group was “deeply disappointed that a policy shift of this magnitude and impact is being rushed out the door days before a presidential transition and without any meaningful input from industry.”

“The stakes are high, and the timing is fraught,” Mr. Neuffer added.

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The rules, which run more than 200 pages, also set up a system in which companies that operate data centers, like Microsoft and Google, can apply for special government accreditations.

In return for following certain security standards, these companies can then trade in A.I. chips more freely around the globe. The companies will still have to agree to keep 75 percent of their total A.I. computing power within the United States or allied countries, and to locate no more than 7 percent of their computing power in any single other nation.

The rules also set up the first controls on weights for A.I. models, the parameters unique to each model that determine how artificial intelligence makes its predictions. Companies setting up data centers abroad will be required to adopt security standards to protect this intellectual property and prevent adversaries from gaining access to them.

Governments facing restrictions can raise the number of A.I. chips they can import freely by signing agreements with the U.S. government, in which they would agree to align with U.S. goals for protecting A.I.

Under the guidance of the U.S. government, Microsoft struck an agreement to partner with an Emirati firm, G42, last year, in return for G42 eliminating Huawei equipment from its systems and taking other steps.

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The Biden administration could issue more rules related to chips and A.I. in the coming days, including an executive order to encourage domestic energy generation for data centers, and new rules that aim to keep the most cutting-edge chips out of China, people familiar with the deliberations said.

The latter rule comes in response to an incident last year in which U.S. officials discovered that Huawei, the sanctioned Chinese telecom firm, had been obtaining components for its A.I. chips that were manufactured by a leading Taiwanese chip firm, in violation of U.S. export controls.

The announcements are among a flurry of new regulations that the Biden administration is rushing to issue ahead of the presidential turnover as it tries to close loopholes and cement its legacy on countering China’s technological development. The administration has issued new limits on exports of chip-making equipment to China and other countries, proposed new restrictions on Chinese drones, added new Chinese companies to a military blacklist, and hurried to finalize new subsidies for U.S. chip manufacturing.

But the A.I. regulations issued Monday appear to be among the most sweeping and consequential of these actions. Artificial intelligence is quickly transforming how scientists carry out research, how companies allocate tasks between their employees and how militaries operate. While A.I. has many beneficial uses, U.S. officials have grown more concerned that it could enable the development of new weapons, help countries surveil dissidents and otherwise upend the global balance of power.

Jimmy Goodrich, a senior adviser for technology analysis at the RAND Corporation, said the rules would create a framework for protecting U.S. security interests while still allowing firms to compete abroad. “They are also forward-looking, trying to preserve U.S. and allied-led supply chains before they are offshored to the highest subsidy bidder,” he said.

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With bird flu still affecting egg prices, brunch in L.A. may soon cost more

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With bird flu still affecting egg prices, brunch in L.A. may soon cost more

Ongoing egg shortages in California due to the spread of bird flu among livestock are bringing another early 2025 challenge to local restaurants, especially brunch spots that rely heavily on eggs for menu items.

It’s also unclear how the ongoing fire disasters that erupted Tuesday could affect eggs and other staple ingredients. But, in light of difficult times overall for the industry and a traditionally slow January, some restaurateurs earlier this week said they have already been forced to raise prices for diners, or are weighing whether to do so, according to multiple interviews.

In San Luis Obispo, Philip Lang, who has operated Bon Temps Creole Café for nearly 30 years, said he increased the price on egg items on his menu right before Christmas. For instance, a $15 menu item now costs $17 for two eggs.

Before the bird flu outbreak, he paid $20 for a case of 15 dozen conventional eggs. Since bird flu, the price has kept doubling, starting from about $50 to now about $110 a case.

“Eggs go into all of our dishes,” he said of his restaurant that only opens for breakfast and lunch. “We make our hollandaise with eggs and dressings with eggs.”

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He said most diners are understanding but some still express disappointment.

In Irvine, eggs go in just about every dish at Burnt Crumbs, from bestselling Japanese-style soufflé pancakes to the breakfast fried rice, said chef-owner Paul Cao. On an average week, Cao said his kitchen goes through 180 to 225 dozens of eggs. Cao is now having to pay more than double compared to three months ago — up to $130 for a case of 15 dozen eggs.

The H5N1 strain of the bird flu virus continues to spread across the globe, curtailing egg supply and making them more expensive and difficult to find. There’s no sign of relief, with scientists and health officials fearing we’re on the verge of another global pandemic. In California, egg prices have soared to $8.97, a 70% increase in the last month, according to the U.S. Department of Agriculture.

Cao said he doesn’t plan to raise prices for now. “I’ll give it until March — first quarter 2025, if this doesn’t trend in the right direction, we will have to raise prices. We can’t keep eating costs,” he said.

He’s afraid of losing customers but said he can’t sustain the price increase for long. “When egg prices go up $2 per dozen, that costs us a couple thousand a month,” he said.

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Chef Walter Manzke, second from left, and the kitchen team at République in Los Angeles. The restaurant, like many others, is weighing increasing the cost of some egg dishes as the bird flu outbreak continues to affect egg prices.

(Ron De Angelis / For The Times)

Walter Manzke, who co-owns République with wife and partner Margarita Manzke, said he feels lucky that he can still procure good eggs from his distributor despite the shortage.

He doesn’t expect to raise prices on his menu yet but is definitely feeling the squeeze because so many of his well-known dishes use eggs — including his popular French toast.

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“We’re just doing the best we can,” he said of the Hancock Park restaurant that ranked No. 4 last year on The Times’ 101 Best Restaurants in Los Angeles guide. “Compromising on quality is not an option.”

On Friday, Delilah Snell, who operates Alta Baja Market, temporarily raised prices to her egg dishes by $1 at her restaurant and market in Santa Ana.

Snell is now paying $131 for a case of 15 dozen free-range organic brown eggs. In October, she paid around $70. She said she could pay less for lower-quality eggs but doesn’t “want to compromise the quality” her customers have come to expect.

On the front counter menu of her store, she posted a sign that reads: “Over the past few weeks, our prices have gone up 40% (and are continuing to rise) because of the bird flu. As a result we need to add a $1 surcharge to all dishes with eggs to cover this expense to still provide you with a high-quality product.”

Once prices drop, she said, she’ll remove the surcharge.

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The spike in egg prices comes on the heels of a slow COVID-19 pandemic recovery, as many restaurants in Southern California continue to struggle.

Lang of Bon Temps said there is now a notice on top of the menu that alerts customers to the $1 temporary increase per egg.

The notice reads: “Due to the bird flu that has caused the price of eggs to quadruple in recent months, we find it necessary to add a surcharge of a dollar per egg for all dishes containing eggs until the price of eggs comes down. We regret each time we are forced to raise any of our prices. Please know that we are not doing this for profit, only to maintain our business during these difficult times. Thank you for your understanding.”

Lang said he plans to do away with the surcharge once prices go down to about $50 for a case of 15 dozen eggs.

Used and unused eggs sit in a carton of 18 in a Chicago area home Tuesday, Jan. 10, 2023.

The cost of eggs soared by 70% in the last month in California, according to the U.S. Department of Agriculture.

(Charles Rex Arbogast / Associated Press)

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As egg prices tick up, several shoppers are also reporting shortages.

On Tuesday afternoon, Cao said the egg shelves at Song Hy market in Little Saigon in Garden Grove were more than half empty. The store, known for its inexpensive groceries, was selling cage-free medium eggs for $8.99 a dozen, according to a video he provided.

Around the same time, an egg cooler at a Trader Joe’s in Irvine was already nearly half empty after having just received a fresh shipment late that morning, one shopper said. A day earlier, at a nearby Costco, Cao said there was a line of at least 12 people waiting to grab a case of a dozen eggs from shelves that were half empty.

Some restaurant owners, such as Jasmin Gonzalez, who runs Breezy in San Juan Capistrano, have opted to raise prices on other menu items and avoid a price hike on the restaurant’s popular egg dishes.

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Her restaurant — which serves a Filipino-inspired brunch — will be closed for a couple weeks for a remodel, she said, and she’ll likely raise prices on some items once it opens, mostly on higher-margin items, such as coffee. That would help the restaurant offset the price of eggs and other increased costs, including the statewide minimum-wage increase, she said.

Gonzalez said she doesn’t feel comfortable changing the price of her $14.99 breakfast burrito, a bestseller.

“I don’t want people paying $16 or $17 for breakfast burritos,” she said. “I don’t like the way that feels.”

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How Poshmark Is Trying to Make Resale Work Again

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How Poshmark Is Trying to Make Resale Work Again

Lauren Eager got into thrifting in high school. It was a way to find cheap, interesting clothes while not contributing to the wastefulness of fast fashion.

In 2015, in her first year of college, she downloaded the app for Poshmark, a kind of Instagram-meets-eBay resale platform. Soon, she was selling as well as buying clothes.

This was the golden age of online reselling. In addition to Poshmark, companies like ThredUp and Depop had sprung up, giving a second life to old clothes. In 2016, Facebook debuted Marketplace. Even Goodwill got into the action, starting a snazzy website.

The platforms tapped into two consumer trends: buying stuff online and the never-gets-old delight of snagging a gently used item for a fraction of the original cost. During the Covid-19 pandemic, as people cleaned out their closets, enthusiasm for reselling intensified. It was so strong that Poshmark decided to go public. On the day of its initial public offering in January 2021, the company’s market value peaked at $7.4 billion, roughly the same as PVH’s, the company that owns Calvin Klein and Tommy Hilfiger, at the time.

Then, the business of old clothes started to fray.

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Using the Poshmark app, Ms. Eager and others said, started to feel like trying to find something in a messy closet. The app was cluttered with features that did not work or that she did not use, and it felt “spammy,” she said, sending too many push notifications.

Many platforms found selling used items hard to scale. Now, online resellers are trying to recalibrate. Last year, ThredUp decided to exit Europe and focus on selling in the United States. Trove, a company that helps brands like Canada Goose and Steve Madden resell their goods, purchased a competitor, Recurate. The RealReal, a luxury consignor, appointed a new chief executive as the company tried to improve profitability.

Poshmark is undergoing perhaps the biggest reinvention. In 2023, Naver, South Korea’s biggest search engine as well as an online marketplace, bought the company in a deal valued at $1.6 billion, less than half its IPO price.

Something of a mash-up of Google and Amazon, Naver is betting it can rebuild Poshmark, which has 130 million active users, with the same technology that made Naver dominant in its own country.

It may also help breathe new life into the resale market. Analysts think the resale fashion market still has room to grow in the United States, with revenue expected to increase 26 percent to $36.3 billion by 2028, according to the retail consultancy firm Coresight Research.

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New legislation in California could help. The law, passed last year, requires brands and retailers that operate in the state and generate at least $1 million to set up a “producer responsibility organization” to collect and then reuse, repair or recycle its products. Resale platforms like ThredUp and Poshmark could be in a position to help brands carry out that mandate.

At the moment, though, Naver’s focus for Poshmark is more basic: Make it a better place to sell and shop. The company has the “operating know-how” to do that, said Philip Lee, a founder of the media outlet The Pickool, which covers both South Korean and U.S. tech companies.

“They’re trying to renovate Poshmark and then expand the market share,” he said.

Poshmark, which is based in Redwood City, Calif., was founded in 2011 by Manish Chandra, an entrepreneur and former tech executive, and three others. In trying to expand, Poshmark faced a problem common to resellers: Capturing the excitement of the secondhand-shopping treasure hunt while not frustrating buyers with an endless scroll. The company knew it needed better search, as well as interactive elements that gave people more reasons to come beyond paying $19 for a J. Crew sweater.

For its part, Naver was looking for ways to push beyond South Korea, where its commerce and search businesses were already mature. The growing online resale market in the United States presented an opportunity, and also gave the company access to the largest consumer market in the world.

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Commerce is a big growth engine for us,” Namsun Kim, Naver’s chief financial officer, said. And the peer-to-peer sector, where users sell to one another, was still in its infancy, with room to expand. But, Mr. Kim added, “it’s a more challenging segment, and that’s why it’s harder for a lot of the larger players to enter.”

There are two common business models for resale: peer-to-peer and consignment. With consignment, a platform collects and redistributes physical goods. Poshmark uses the peer-to-peer model, which relies on scores of people — many of them novices — haggling over prices and then mailing items to one another. This decentralization can be a headache for brands, which like to maintain a certain level of control of their products. And platforms like Poshmark must make buyers comfortable with trusting the sellers on their site.

Before the Naver purchase, it was difficult to push through needed technological changes, said Vanessa Wong, the vice president of product at Poshmark.

“I would always talk to my engineers and ask, ‘What if we do this or do that?’ They’re like, ‘That’s hard. The effort’s really high,’” Ms. Wong said.

Naver’s purchase offered both the investment and the expertise to pull off the changes. Founded in 1999, the company is everywhere in South Korea.

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“We are not just a simple search technology or A.I. service,” said Soo-yeon Choi, the chief executive of Naver, whose headquarters are near Seoul. The company, she said, “alleviates the frustrations of people, which is what is needed to help growth.”

Search built Naver “into the massive power that they are in Korea,” said Mr. Chandra, who stayed on as chief executive after Naver’s purchase. It was the top priority when the company bought Poshmark.

Several new elements for users and sellers have been introduced. With a tool called Posh Lens, users can take a photo of an item and, using Naver’s machine-learning technology, the site populates listings that are the same or similar to the shoe or tank top that they’re searching for. A paid ad feature for sellers called “Promoted Closet,” pushes listings higher on customer feeds.

Poshmark also introduced live shows, some of which are themed, to draw in the TikTok generation and increase engagement. One party auctioned off clothing previously worn by South Korean celebrities, a connection that was made with the help of Naver.

Still, the resale market is going through growing pains and has not quite found its footing since the height of the pandemic. It’s not clear whether the changes taking place at Poshmark will be enough. In May, Mr. Kim, Naver’s finance chief, said in an earnings call that Poshmark’s profitability was improving, but by November, the company was cautioning that growth had slowed because of weakness in the peer-to-peer resale market in North America.

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The company has already done some backpedaling on unpopular decisions.

In October, Poshmark introduced a new fee structure, which increased costs for buyers. Sellers, fearing that higher costs would make consumers bolt, revolted. Within weeks, the company scrapped the new fee structure.

And there are still user headaches: tags and keywords that help users find what they’re looking for can be miscategorized. Sellers sometimes tag their products incorrectly to get more eyeballs on their less popular products. (Hard-to-offload Amazon leggings, for example, may be listed as Free People apparel.)

The company is beta testing changes with its frequent sellers — people like Alex Mahl, who sells thousands of dollars in apparel on the site each year. And within dedicated Facebook groups related to Poshmark, there’s a lot of chatter about the changes that sellers and buyers would still like to see.

“The only way for it to do well is there’s going to be constant changes,” Ms. Mahl said about the tweaks on Poshmark. “If you were just on an app that never changed — one, it would be boring, and two, the opportunity to just do better wouldn’t be there.”

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One recent morning, Ms. Eager, the seller who joined Poshmark back in college, was pleasantly surprised to find that the app had some new features she actually liked. She snapped a photo of her Aerie gray tank top with Posh Lens. Within seconds, the app populated listings of similar products. It was so much better than conjuring up the adjectives needed to describe it.

“Love it,” Ms. Eager exclaimed.

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