"There are early and encouraging signs of a mild zombie apocalypse, where higher interest rates and minimum wages have combined to kill off struggling firms and leave the door open for new, more productive ones to replace them, she said. But while this is good news for our medium-term economic prospects, the short-term impact could be job displacement and higher unemployment."
"At the start of what could be a pivotal year for the economy, the Resolution Foundation said businesses were grappling with a triple whammy of multiyear increases in interest rates, energy prices and the minimum wage that could finish off some underperforming companies. Publishing its new year outlook report, the thinktank said 2026 had potential to be a turning point after decades of sluggish productivity growth a key metric of output per hour of work which is vital for raising living standards."
Businesses face a triple whammy of multiyear increases in interest rates, energy prices and the minimum wage that could push underperforming 'zombie' firms into collapse. 2026 has potential to be a turning point after decades of sluggish productivity growth, a key metric of output per hour of work vital for raising living standards. The collapse of unproductive companies could free resources for more productive firms, improving medium-term prospects, but could also cause job displacement and a sharp rise in unemployment. Unemployment reached 5.1% in October, the highest outside the Covid pandemic in a decade. Policymakers must address short-term job losses.
Read at www.theguardian.com
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