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

Kyoto Raises Lodging Tax as Peak Travel Season Begins

Kyoto City significantly raised its lodging tax from March 1st, increasing the maximum charge per person per night from 1,000 yen to as much as 10,000 yen, in a move aimed at tackling overtourism and funding the preservation of cultural assets, even as questions remain about its impact on visitors and the local economy.

Foreign Visitors and Ex-Rescuer Pull 80-Year-Old Woman From Hakuba Crashed Car

A former emergency responder and foreign tourists worked together to rescue a woman in her 80s who was trapped inside an overturned light vehicle in Hakuba Village, Nagano Prefecture.

Himeji Castle Hikes Admission Fee for Non-Residents

The admission fee for the World Heritage-listed Himeji Castle in Himeji, Hyogo Prefecture, was revised on March 1st for the first time in 11 years, introducing a dual pricing system that significantly raises costs for visitors from outside the city.

Australian Girl, 8, Dies After Snowmobile Overturns in Hakuba

An eight-year-old Australian girl died after a snowmobile overturned in Hakuba Village, Nagano Prefecture, at around 11 a.m. on February 28th, with authorities investigating the cause of the accident.

Major Maglev Excavation Begins

The assembly of a massive shield machine for tunnel construction at the Kanagawa Station site of the Linear Chuo Shinkansen has been completed, with the site opened to the media as excavation prepares to move forward toward Nagoya.

MEDIA CHANNELS

MORE Business NEWS

Yen’s Purchasing Power Falls to One-Third Over 30 Years

As price hikes spread from fast food to daily necessities and households grapple with rising living costs, the steady depreciation of the yen has emerged as a central driver of inflation, with multiple indicators showing that the currency’s purchasing power has fallen to roughly one-third of its mid-1990s peak, underscoring how three decades of economic stagnation, prolonged monetary easing and renewed fiscal expansion have left Japan far more vulnerable to imported inflation than other major economies.

Mysterious AI Startup Akari Soars Past 100 Billion Yen

An AI startup that emerged almost overnight, Akari had long been known only to insiders due to its limited media exposure, but after receiving investment from Mitsubishi Electric at the end of January and seeing its corporate valuation surge past 100 billion yen, the Tokyo-born venture has rapidly positioned itself as a leading unicorn candidate in Japan’s AI sector.

Mizuho To Shift 5,000 Jobs As AI Slashes Back-Office Work

Mizuho Financial Group has decided on a policy to improve operational efficiency through the use of artificial intelligence, aiming to reduce administrative work equivalent to as many as 5,000 employees over the next decade.

Honda Rolls Out Premium SUV Model

Honda announced on February 26th that it will introduce a new model of its SUV, the CR-V, with prices starting at 5,122,700 yen.

Japan Antitrust Watchdog Raids Microsoft

The Japan Fair Trade Commission has conducted an on-site inspection of Microsoft’s Japanese subsidiary on suspicion of violating the Antimonopoly Act by potentially restricting the use of rival services.

Japan's Farmers and Factories Welcome Long-Awaited Rain

A long-awaited spell of steady rain fell across Japan following a record stretch of low precipitation, offering much-needed relief to farmers and manufacturers that had struggled with water shortages.

Food Delivery Service Wolt to Exit Japan

Food delivery service Wolt announced that it will withdraw from Japan on March 4th as competition in the domestic delivery market intensifies.

Big Mac Climbs To 500 Yen

McDonald’s, which opened in Japan in 1971 and has long counted the Big Mac among its signature products, saw the burger’s price rise from 280 yen in 2008 to 480 yen before increasing further to 500 yen on February 25th, nearly doubling over the past two decades.

< 2 3 4 5 >