Bankruptcies Surge in Japan with Growing Labor Shortages and Rising Costs

Nov 12, 2024 | News On Japan

TOKYO - 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

Typhoon No. 25 Nears Kanto With Powerful Winds and Heavy Rain

Large and powerful Typhoon No. 25 was moving north toward the Izu Islands and Kanto on September 21, with destructive winds and torrential rain forecast as the storm makes its closest approach through the evening and night, while at 5 a.m. it was located about 220 kilometers southwest of Hachijojima and moving north at 20 kilometers per hour.

Typhoon Causes Widespread Transport Disruption Across Kanto

Transport disruption across Kanto had widened sharply by late morning on September 21 as large and strong Typhoon No. 25 approached the region, with hundreds of flights canceled at Haneda and Narita airports, railway services suspended across large parts of Chiba Prefecture, sections of major expressways closed and the Tokaido Shinkansen facing the possibility of sudden service suspensions.

Emperor and Empress Watch Asian Games Basketball

Emperor Naruhito and Empress Masako watched Japan defeat Kazakhstan in a women’s basketball preliminary-round game at the 20th Asian Games in Nagoya.

Drone Hits Nagoya City Hall During Asian Games Light-Up

A drone filming the illuminated Nagoya City Hall headquarters crashed into a building across the road shortly before 9 p.m. on September 17, with police investigating whether the flight may have violated Japan's Civil Aeronautics Act.

Mount Tokachi Volcano Continues to Emit Smoke

Volcanic smoke continues to rise from Mount Tokachi (Tokachidake), an active volcano in Daisetsuzan National Park in Hokkaido, one week after its eruption alert level was raised to Level 3, restricting entry to the mountain and prompting a series of cancellations at nearby hot spring inns just before the peak autumn foliage season.

MEDIA CHANNELS

MORE Business NEWS

Five-Day Holiday Puts Japan's Cost-of-Living Pressures in Focus

Japan's first five-day Silver Week holiday in 11 years has put renewed attention on household finances, with persistently high food prices and a weakening yen threatening to erode the benefits of the government's planned consumption tax cut on food.

Seventeen Tabs Open and Still No Decision

A list of providers with identical promises turns selection into brute-force sorting. The differences do exist; they are just hidden somewhere other than the homepage.

Japan's Return to Higher Rates Squeezes Households and Firms

The Bank of Japan raised its policy rate from 1.0% to 1.25% on September 18, taking borrowing costs to their highest level in 31 years and accelerating the pace of monetary tightening as persistent inflation and concerns over fiscal expansion put upward pressure on interest rates.

Yen Strengthens Sharply as Intervention Warning Rattles Market

The yen strengthened by more than 1 yen against the dollar in a short period late on September 18 after the Bank of Japan conducted a rate check, a step commonly taken in preparation for possible intervention in the foreign exchange market.

Nikkei Rallies as BOJ Rate Hike Weakens Yen and Lifts AI Shares

Tokyo stocks rose sharply on September 18, with the Nikkei 225 climbing to around 65,350 in afternoon trading after the Bank of Japan raised interest rates to 1.25%, as the yen weakened and investors bought artificial intelligence and semiconductor-related shares.

BOJ Raises Policy Rate to 1.25% as Yen Weakens

The Bank of Japan raised its policy interest rate from 1.0% to 1.25% on September 18, lifting borrowing costs to their highest level in 31 years as policymakers moved to contain growing inflation risks, but the yen weakened sharply after the decision as markets focused on two dissenting votes and uncertainty over the pace of further increases.

Market Spreads: Understanding Bid-Ask Spreads, Trading Costs and Spread Strategies

A market spread is generally the difference between two market prices. Most commonly, traders use the term to describe the bid-ask spread: the difference between the highest price a buyer is currently prepared to pay and the lowest price a seller is prepared to accept.

Starbucks Considers Selling Majority Stake in Japan Business

Starbucks is considering selling a majority stake in its Japanese business, potentially valued at as much as $3 billion, or about 470 billion yen, as the U.S. coffee chain seeks to concentrate management resources on its struggling North American operations.

< 2 3 4 5 >