The number of corporate bankruptcies in Japan exceeded 10,000 for the first time in 11 years in 2024 as businesses faced a worsening labour shortage and higher prices of imported supplies due to the yen’s depreciation, a survey by a credit research company showed Tuesday.
Small and medium-sized enterprises were hit hard, with the end of special tax deferral measures introduced during the COVID-19 pandemic causing an additional financial burden, according to Tokyo Shoko Research.
Bankruptcies rose 15.1 per cent from the previous year to 10,006, marking the third consecutive year of increases. Of these, 10,004 were small and medium-sized enterprises.
Total liabilities were 2.34 trillion yen ($14.9 billion), down 2.4 per cent from 2023. The yen plunged to its weakest level in 37 years against the US dollar in the summer of 2024, driving up import costs for businesses. A worsening labour shortage, fuelled by Japan’s aging population and the introduction of stricter overtime regulations, further strained industries such as construction and services.
By industry, the services sector, including restaurants, saw the highest number of bankruptcies at 3,329 cases, a 13.2 per cent increase, surpassing 3,000 for the first time since 1990.
— Kyodo
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