First-half business failures in Japan reach highest level in 12 years
Corporate bankruptcies in Japan climbed above 5,000 in the first half of the year for the first time in 12 years, as persistent labor shortages and rising prices continued to weigh on businesses, according to a report released Wednesday by Tokyo Shoko Research Ltd, Jiji Press reports.
A total of 5,346 companies with liabilities of at least 10 million yen failed between January and June, up 7.1 percent from the same period last year. Six of the bankruptcies were tied to disruptions stemming from instability in the Middle East.
The last time first-half bankruptcies exceeded the 5,000 mark was in 2014, when 5,073 cases were recorded.
Bankruptcies attributed to labor shortages surged 37.7 percent to 237, with many firms pointing to escalating payroll expenses as a key factor. Meanwhile, inflation-related failures, including businesses unable to pass higher costs on to customers, increased 27.6 percent to 439, the highest level since 2022.
Earlier, it was reported Japan unveils the world’s first Pokémon airport.