Japan Biz Failures Top 10,000 for 1st Time in 11 Years

Tokyo, April 8 (Jiji Press)--The number of corporate bankruptcies in Japan in fiscal 2024 climbed 12.0 pct from the previous year to 10,144, topping 10,000 for the first time in 11 years, Tokyo Shoko Research Ltd. said Tuesday. 
The annual figure rose for the third consecutive year.
The result reflected a surge in the number of bankruptcies due to labor shortages, particularly among small and midsize companies, and rising prices.
The number of business failures linked to soaring labor costs and labor shortages increased 1.6 times to 309, the highest since fiscal 2013.
The number of bankruptcies attributed to high prices for materials and others rose 2.0 pct to 700. Failures of companies that had received interest-free, unsecured loans after suffering sales declines due to the COVID-19 pandemic numbered 529, down 15.0 pct.
Bankruptcies increased in eight of the 10 surveyed sectors. The construction industry posted a 9.3 pct rise in the bankruptcy number to 1,943, reflecting higher costs due to a weak yen. The number of failures in the manufacturing sector rose 17.1 pct to 1,179.
   By contrast, the number of bankruptcies slid 3.8 pct to 424 in the transportation sector, marking the first decrease in four years, as companies in the sector passed on rising costs to customers.
   Total liabilities left by failed companies in fiscal 2024, which ended in March, fell 3.6 pct to 2,373.8 billion yen, while topping 2 trillion yen for the third straight year.
   In March alone, the number of bankruptcies fell 5.8 pct from a year earlier to 853, with total liabilities decreasing 30.6 pct to 98.5 billion yen.
   A Tokyo Shoko Research official said that the number of corporate bankruptcies is expected to "rise moderately" amid growing concerns about the impact of U.S. President Donald Trump's high tariff policy.
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