Hey friends - what a fantastic first week of November! I’m still out in Silicon Valley for Tim Draper’s accelerator program. There are founders from 30 different countries, building the most incredible stuff - rockets, cancer cures, new forms of energy production, robots, and (equally cool) fintech. 😜

Scoops app users: We have taken the beta app offline for a short period for some major updates. Can’t wait to show you all what we’ve been working on! Reach out if you have any questions.

We’re going to switch up the content in this spotlight for a bit to make sure you all have the info you need to master your week.

🌎 The Big Picture

The longest government shutdown is starting to create some major disruptions this week, but the good news is that October wasn’t as bad as September for business.

Government programs and services are slowing, closing, or delayed as the government shutdown drags into its second month. Congress hasn't agreed on a budget to fund key departments and agencies, leading to furloughs and loss of pay for hundreds of thousands of federal workers and disrupting crucial services. Most urgently, about 42 million people who rely on monthly food assistance could lose benefits, leaving families scrambling and food banks overwhelmed as federal funds dry up. Federal courts recently ordered the administration to resume food aid payments, but even if benefits are restored, technical and legal delays may still leave families without aid for days or weeks.

Some mandatory services, like Social Security, have kept running, but questions or paperwork are getting stuck in limbo. Businesses and families will need to carefully monitor the shutdown's impact on wages, services, and the cost of living.

The government shutdown is stalling air travel. The Federal Aviation Administration (FAA) announced that it is cutting 10% of flights at 40 of the nation's biggest airports. Starting Friday, roughly 3,500 to 4,000 daily flights will be pared back as air traffic controllers and security staff continue to work without pay, creating staffing shortages and increasing safety concerns. Travelers can expect more cancellations, longer security lines, and rescheduled flights as a result. The reduced capacity could worsen holiday travel plans the longer it continues.

The FAA's decision is unprecedented, highlighting the severe impact of the shutdown, which has lasted more than a month. Earlier reports estimated that the government shutdown had already created more than 50,000 flight cancellations and 140,000 flight delays due to short staffing. If you're planning to fly soon, prepare for potential delays and disruptions.

Companies picked up hiring last month, but not across the board. Payroll provider ADP reported that private employers added 42,000 jobs in October after two months of workforce cutbacks. While that was more than economists expected, hiring was mostly concentrated in larger companies, while smaller businesses lost headcount. The strongest hiring was in education, health care, and trade-related fields like transportation and utilities, while tech, business services, and leisure and hospitality continued to see job cuts.

Pay increases continued, with job-stayers seeing a 4.5% annual boost and job-switchers 6.7%. That means wages are gaining some ground on the higher cost of living. So, it's still a very challenging time to find a new role, but businesses have an opportunity to find talent at more affordable salaries.

Americans owe more than ever and are struggling to pay it off. The New York Federal Reserve reported total household debt grew to a record $18.6 trillion, led by $24 billion in new credit card balances. The total amount increasing is normal, given rising prices and more payments shifting to credit cards, but people are struggling to manage those debts. The percentage of debt in serious delinquency, with payments over 90 days late, rose to the highest levels post the 2008 crisis across credit cards, auto loans, and other kinds of retail installment loans.

Younger adults are getting hit the hardest, especially given the restarted student loan payments. Student loan borrowers face the most trouble, with 9.4% of balances 90 days or more overdue or in default. Those juggling high-rate debt or worried about missing bills will need to review their budgets and explore repayment options to avoid lasting damage to credit scores.

Older Americans are the best spenders right now. Bank of America data shows that card spending by Baby Boomers and older has grown more per household than overall spending since 2022, thanks in part to a large Social Security cost-of-living bump in 2023. That gave many retirees extra cash. The rising stock market has also supported seniors’ spending, since older Americans tend to have more assets invested.

These trends are crucial for businesses, with more than 4 million people a year turning 65 through 2027. Retirees’ needs will influence which companies see growth, especially in healthcare, travel, and utilities.

Get the full breakdown of all the trends affecting your home, wallet, and career in the new Weekend Scoop on the Scoops app!

🏭 The Companies Everyone’s Talking About

Dig into more scoops and vote on company approval ratings in the Scoops app!

❔ The Big Question of the Week

Challenge your perspectives and learn from the community voting on the Scoops app!