One of the most common questions about Gmail is "where are my folders?" Although Google correctly states that labels are better to use than folders, it looks like they have finally succumbed to users' requests for a folder-like organizing scheme.
Their latest evolution is described in the Official Google Blog: The evolution of Gmail labels.
If you are confused about labels, folders, and how to organize in Gmail, or whether you want to see the data that Google used to determine the need to change, it's worth a read
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