Japan bankruptcies surge in 2023 amid labor shortage, inflation

Economy

The number of corporate bankruptcies in Japan surged in 2023, topping 8,000 for the first time in four years, as a rise in the price of materials and wage increases hurt corporate earnings, a credit research agency said Monday.

Business failures with debts of at least 10 million yen ($68 million) jumped 35.2 percent from a year earlier to 8,690 for the second consecutive yearly rise, Tokyo Shoko Research said.

Increases in labor costs due to workforce shortages particularly in the construction industry, and surges in the price of raw materials and energy dealt a blow to companies, some of whic...

Kyodo News

Kyodo News