Tokyo, Nov. 10 (Jiji Press)–The number of corporate bankruptcies with liabilities of 10 million yen or more in Japan in October fell 3.2 pct from a year before to 934, Tokyo Shoko Research Ltd. said Tuesday. Although the figure marked the second straight month of decrease, it was the third-highest level this year as labor costs continued to rise amid inflation and difficulties securing workers. The number of bankruptcies attributed to labor shortages reached 50, the highest October total on record. Among them, cases related to soaring labor costs increased to 32 from 22 a year earlier. “Minimum wage increases, which started in October, are putting additional pressure on smaller companies already struggling to stay profitable,” a Tokyo Shoko Research official said. Of the 10 sectors surveyed, four experienced year-on-year increases in bankruptcies, with the service industry posting the largest number, at 342 cases, up 4.9 pct. The wholesale sector reported 116 cases, up 17.1 pct, while the transportation sector saw 38 cases, up 2.7 pct. Total liabilities left by failed companies climbed 1.4 pct to 129,318 million yen. The number of bankruptcies with debts of 1 billion yen or more increased 40 pct, indicating that bankruptcies are spreading to midsize companies. END [Copyright The Jiji Press, Ltd.]
