Skip to main content

Too much paperwork, fewest bankruptcies since 1964

Some companies that have had to furlough workers appear to be judging that applying for the government’s wage subsidy programme is more trouble than it’s worth. Nonetheless, the number of firms receiving the subsidy has risen sharply in recent weeks so we still think the scheme will drive a rebound in household incomes. Meanwhile, bankruptcies plunged to a 54-year low in May. While some of that was down to a reduction in court operations last month, it was also a sign that government support is succeeding in keeping struggling small firms afloat.

Become a client to read more

This is premium content that requires an active Capital Economics subscription to view.

Already have an account?

You may already have access to this premium content as part of a paid subscription.

Sign in to read the content in full or get details of how you can access it

Register for free

Sign up for a free account to gain:

  • Unlock additional content
  • Register for Capital Economics events
  • Receive email updates and economist-curated newsletters
  • Request a free trial of our services


Get access