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    427 bankruptcies due to labor shortages, a 24% jump; 77% of cases were with fewer than 10 employees, highlighting the difficulties of being unable to raise wages
    Japan

    427 bankruptcies due to labor shortages, a 24% jump; 77% of cases were with fewer than 10 employees, highlighting the difficulties of being unable to raise wages


    Teikoku Databank announced on the 8th that there were 427 bankruptcies due to labor shortages in 2025 (a 24.9% increase from the previous year), the highest number ever recorded for the third consecutive year. As large companies accelerate their large wage hikes, small businesses are facing an exodus of human resources, and there are concerns that the number of bankruptcies due to "difficulty in raising wages" will continue to increase.

    Related article: Bankruptcies due to labor shortages exceed 400 for the first time in a year, a new record for the third consecutive year

    Of the total (427 cases), 329 cases, or 77.0%, were small businesses with fewer than 10 employees. For these companies, even the resignation of one employee can have a significant impact, highlighting the reality that they are prone to bankruptcy due to a lack of manpower.

    https://www.tokyo-np.co.jp/article/460713?rct=economics

    View 3 Comments

    3 Comments

    1. MadnessMantraLove on

      This is a good thing

      We want higher real wages

      labor shortages are a *good* thing

    2. Tough_Oven_7890 on

      Raise visa renewal fees for foreign labour as well and now expect labour’s to come to japan ? Japan need to rethink it’s strategy for foreigners or it may face more headwinds

    3. Dramatic_Ad8473 on

      It’s a bit sad I guess but more bankruptcies are necessary. Japan needs more efficient organizations that scale larger. Across the board.Â