Labour-shortage bankruptcies reach an August record in Japan
Japan’s overall bankruptcy count rose 3.1% to 830, while restaurant-sector failures jumped 42.8% and liabilities increased 26.5% for a sixth consecutive month.
- Japan recorded 32 corporate bankruptcies in August due to staffing shortages, a record high for that month.
- These failures were attributed to factors such as rising labour costs and employees leaving their jobs.
- Intensifying staff shortages are forcing companies, particularly small and medium-sized ones, to raise wages, which can strain their cash flow.
Japan registered 32 corporate bankruptcies associated with staffing shortages in August, the highest figure recorded for that month and up from 23 a year earlier, according to Tokyo Shoko Research Ltd.
Higher labour costs and employee departures were among the causes included in this classification.
The credit research firm noted that pay increases have become more widespread among small and medium-sized companies as staffing shortages intensify.
It warned that “overly ambitious wage hikes could further strain companies’ cash flows.”
Data issued on Tuesday (September 8) put the nationwide total at 830 corporate bankruptcies involving liabilities of 10 million yen or more.
This was 3.1% above the previous August and the highest figure for that month in 14 years.
Sluggish sales were also identified as a major contributor.
Services and related sectors led the industry breakdown with 291 cases, 20.2% above the year-earlier level.
Restaurant businesses, including izakaya (Japanese-style pubs), accounted for 80 of those failures after the sector’s total jumped 42.8%.
Construction and retail likewise recorded more bankruptcies than a year earlier.
Across all failed companies, liabilities totalled 144,728 million yen, up 26.5% from a year earlier and marking a sixth consecutive monthly increase.
Failures carrying liabilities of 1 billion yen or more numbered 21, against 12 a year earlier, adding to the aggregate amount.
[Copyright The Jiji Press, Ltd.]
