The number of corporate bankruptcies in Japan surged in 2023, topping 8,000 for the first time in four years, as a rise in the price of materials and wage increases hurt corporate earnings, a credit research agency said Monday.
Business failures with debts of at least 10 million yen ($68 million) jumped 35.2 percent from a year earlier to 8,690 for the second consecutive yearly rise, Tokyo Shoko Research said.
Increases in labor costs due to workforce shortages particularly in the construction industry, and surges in the price of raw materials and energy dealt a blow to companies, some of which were already burdened by the repayment of loans provided under the government's pandemic-relief program.
All 10 industries covered by the survey saw an increase in bankruptcies, with the service sector logging the most at 2,940 cases, up 41.7 percent. The construction industry came second with 1,693, up 41.8 percent.
Total liabilities left by bankrupt companies rose 3.1 percent to 2.4 trillion yen, led by Panasonic Liquid Crystal Display Co. which applied for liquidation in September 2023 with debts of 583.6 billion yen, it said.
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