Japan Biz Failures Top 10,000 for 2nd Straight Year

Tokyo, Jan. 13 (Jiji Press)–The number of corporate bankruptcies in Japan surpassed 10,000 for two years in a row in 2025 as smaller businesses were hard hit by soaring labor costs and surging prices, Tokyo Shoko Research Ltd., a credit research firm, said Monday. A survey by Tokyo Shoko Research showed that the number of business failures with liabilities of 10 million yen or more grew 2.9 pct from the previous year to 10,300 in 2025, rising for four consecutive years. Total liabilities left by failed companies dropped 32 pct to 1,592.3 billion yen. Bankruptcies with debts of less than 100 million yen accounted for 7,892 cases, or three-fourths of the total. By industry, services topped the list with 3,478 bankruptcies, up 4.4 pct, followed by construction, with 2,014 cases, up 4.6 pct. The number of failures related to labor shortages, such as soaring labor costs, surged 35.9 pct to 397, the highest level since statistics began in 2013. The number of bankruptcies linked to rising prices, or a company’s failure to pass on higher costs to clients, climbed 9.2 pct to 767. Many smaller firms face financial difficulties as they are forced to raise wages to secure labor. Companies that struggle with excessive debts face additional risks including rising interest rates, U.S. tariffs and tensions between Japan and China, Tokyo Shoko Research said. END [Copyright The Jiji Press, Ltd.]