TOKYOOctober 9 (News On Japan) – The number of bankruptcies in the first half of the fiscal year has reached 5,000 for the first time in a decade, due to 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 exceeded 5,000 since fiscal year 2014, when 5,049 cases were reported.
Meanwhile, the total amount of debt fell 13.8% from last year, to about 1.375 trillion yen.
By sector, bankruptcies increased in nine sectors, with the exception of ‘Finance and Insurance’. The largest increase was observed in the ‘Services’ sector, followed by ‘Construction’.
Factors related to labor shortages, such as rising labor costs, contributed to an 80.4% year-over-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 exceed 10,000 for the first time in eleven years, potentially exceeding 2013 levels.
Source: ANN
