Japan Biz Failures Top 10,000 in 2024, Worst in 11 Years

Tokyo, Jan. 14 (Jiji Press)--The number of corporate bankruptcies with liabilities of 10 million yen or more in Japan last year rose 15.1 pct from the previous year to 10,006, surpassing 10,000 for the first time in 11 years, Tokyo Shoko Research Ltd. said Tuesday.

The annual figure marked the third consecutive year of increases as rising prices due to the yen's weakening and labor shortages caused business failures in a wide range of industries.

Meanwhile, total liabilities left by failed companies in 2024 decreased 2.4 pct to 2,343.5 billion yen, as there was only one bankruptcy case with liabilities of 100 billion yen or more, involving MSJ Asset Management Co., formerly Mitsubishi Aircraft Corp., with 641.3 billion yen. More than 70 pct of the failed companies had liabilities of less than 100 million yen.

By industry, business failures increased in eight of the 10 sectors surveyed. The services sector topped the list, with 3,329 bankruptcies, up 13.2 pct from 2023. The construction and transport industries, both facing serious hiring difficulties due to stricter overtime rules, saw their bankruptcy numbers increase 13.6 pct and 9.8 pct, respectively.

The number of bankruptcies linked to labor shortages jumped some 80 pct to 289, hitting a record high since the research firm began compiling such data in 2013. The number of inflation-related bankruptcies, or those caused by businesses being unable to pass on rising costs to prices, grew for the second straight year to 698.

[Copyright The Jiji Press, Ltd.]