Japan bankruptcies due to labor shortage at record

Jan 11, 2020 | News On Japan

Jan 11, 2020 (NHK) - A survey by a private research firm has found that a record number of Japanese companies went bankrupt last year due to a shortage of workers.

Tokyo Shoko Research says 426 firms declared bankruptcy in 2019 because they couldn't find enough people. That's up about 10 percent from the year before and the highest since 2013, when data first became available.

Breaking down the numbers shows that 270 companies, or more than 60 percent, shut their doors because the head was retiring and couldn't find a successor.

Nearly 80 firms couldn't hire enough workers, even after placing help-wanted ads. Over 40 couldn't replace employees who had retired or moved on. And over 30 couldn't cope with rising labor costs.

The problem is especially acute in the construction and services sectors. These areas accounted for about half of all bankruptcies caused by labor shortages.

Tokyo Shoko Research says smaller companies are especially vulnerable to worker shortages. It says managers face another tough year ahead, as costs for part-timers and other workers keep rising.

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