A record number of bankruptcies was registered in Japan in the first half of the fiscal year 2025, which began on April 1, Kyodo news agency reported.
It is noted that 5,172 companies filed for bankruptcy in Japan in the first six months of the fiscal year – the highest figure since 2013, when such statistics began to be kept. In addition, the number of bankruptcies in the country has increased for the fourth consecutive year during this period. Small businesses have suffered the greatest blow – Companies with market capitalizations of less than 10 million yen (about 65,000 USD) and debt levels of less than 100 million yen (650,000 USD) account for over 70%.
The main reasons for the bankruptcies include labor shortages and rising employee costs. The largest number of bankruptcies were registered in companies in the service sector, as well as in the construction sector, which faced rising prices for building materials.