News On Japan

Bankruptcies Surge in Japan with Growing Labor Shortages and Rising Costs

TOKYO, Nov 12 (News On Japan) - The number of corporate bankruptcies across Japan in October surpassed 900 cases, reaching a level not seen in 11 years.

According to Tokyo Shoko Research, there were 909 corporate bankruptcies involving liabilities of 10 million yen or more in October, a 14.6% increase from the previous year.

For October, this marks the first time since 2013 that bankruptcies have reached the 900-case level.

In total, the number of bankruptcies from January to October has reached 8,323 cases, a 17.6% rise compared to the same period last year.

On the other hand, total liabilities in October amounted to 252.9 billion yen, a 17.8% decrease from the previous year.

By industry, the "service and other industries" category had the most cases with 303, followed by construction and manufacturing.

Bankruptcies related to labor shortages, largely driven by rising personnel costs, have surged, with cumulative cases from January to October almost doubling to 244 compared to 128 in the same period last year.

With the yen's renewed depreciation since last month, rising raw material costs pose an additional threat to corporate earnings.

Tokyo Shoko Research analyzed, "The prospect of surpassing 10,000 corporate bankruptcies for the first time in 11 years is becoming a real possibility."

Source: ANN

News On Japan
POPULAR NEWS

Japan is facing a deepening crisis of poverty and inequality, with rising reports of 'invisible homeless' individuals and growing economic hardships among the population. Discussions over reforms to the country's tax and welfare systems have taken center stage, as policymakers grapple with how to provide meaningful support.

A special lighting ceremony was held on November 20th at Ueno Toshogu Shrine, located in Ueno Park, Taito Ward, Tokyo. The event featured a unique lighting design created by renowned lighting designer Motoko Ishii.

A Japanese pharmaceutical company has announced the successful commercialization of fiber made from silk produced by bagworms.

Sales for the Year-End Jumbo Lottery, which offers a combined prize of 1 billion yen for the first prize and adjacent prizes, have officially begun.

Prime Minister Ishiba, attending the G20 summit in Brazil, held talks on November 18th with UK Prime Minister Starmer, where they agreed to establish an economic "2+2" framework involving foreign and economic ministers.

MEDIA CHANNELS
         

MORE Business NEWS

The iconic Osaka Marubiru in Umeda, closed last year due to aging, will be replaced with a new 192-meter skyscraper, the tallest in the Osaka Station area.

The average price for a newly built condominium in Tokyo’s 23 wards has remained above 100 million yen for six consecutive months.

The average transaction price of newly harvested rice between agricultural cooperatives and wholesalers reached a record high for the second consecutive month in October. The price of unpolished rice was 23,820 yen per 60 kilograms.

NVIDIA has thrown its weight behind Sakana AI, a Tokyo-based startup rapidly gaining traction in the booming generative AI field. Since ChatGPT's debut in November 2022, industry giants like Google and Meta have entered the fray, intensifying the competitive landscape.

Bank of Japan Governor Ueda Kazuo says the BOJ makes decisions on interest rates by carefully assessing all risk factors at each monetary policy meeting. (NHK)

Nissan has announced a major restructuring plan involving the elimination of 9,000 jobs worldwide, triggered by worsening business performance.

Resona Bank has launched a new branch concept that operates without counters handling cash.

A Ferrari seized from a tax delinquent was auctioned by the Tokyo Regional Taxation Bureau, fetching over 170 million yen, the highest bid ever recorded for such an auction.