Japan Jan.-June Biz Failures Top 5,000 for 1st Time in 12 Yrs

Tokyo, July 8 (Jiji Press)--The number of corporate bankruptcies in Japan with debts of at least 10 million yen in January-June surpassed 5,000 for the first time in 12 years on a first-half basis, reflecting labor shortages and inflation, Tokyo Shoko Research Ltd. said Wednesday.

The six-month total grew 7.1 pct from a year earlier to 5,346, including six bankruptcies linked to the turmoil in the Middle East.

The first-half figure last exceeded 5,000 in January-June 2014, when 5,073 bankruptcies were recorded.

In the latest first-half, the number of bankruptcies related to labor shortages rose 37.7 pct to 237. Many businesses cited soaring labor costs as the reason for their failures.

Inflation-triggered bankruptcies, including those linked to companies being unable to pass higher costs on to customers, rose 27.6 pct to 439, the highest since 2022.

[Copyright The Jiji Press, Ltd.]