Bankruptcies in Japan Surpass 5,000 for First Time in 10 Years

Oct 09, 2024 | News On Japan

TOKYO - The number of bankruptcies in the first half of the fiscal year has reached over 5,000 for the first time in 10 years, driven by a severe labor shortage.

According to Tokyo Shoko Research, there were 5,095 bankruptcies nationwide from April to September, an increase of 17.8% compared to the same period last year.

This is the first time the number of bankruptcies in the first half of the year has surpassed 5,000 since fiscal 2014, when 5,049 cases were reported.

Meanwhile, the total debt amount decreased by 13.8% from last year, reaching approximately 1.375 trillion yen.

By industry, bankruptcies increased in nine sectors, excluding "Finance and Insurance." The largest increase was seen in the "Services" sector, followed by "Construction."

Labor shortage-related factors, such as rising labor costs, contributed to an 80.4% year-on-year increase in bankruptcies. For small and medium-sized businesses, the inability to pass on higher costs to improve performance has become a significant burden.

Tokyo Shoko Research estimates that if this trend continues, the annual number of bankruptcies could surpass 10,000 for the first time in 11 years, potentially exceeding the 2013 level.

Source: ANN

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