Japan Bankruptcies Climb to 12-Year High in May

Market

Tokyo, A survey shows bankruptcies in Japan rose to the most in 12 years in May. The failures come as pandemic-related government support for struggling businesses nears its end.

Research firm Teikoku Databank says 1,016 companies started liquidation last month. That’s a 46 percent year-on-year increase, according to Japan’s broadcaster NHK World.

The survey covers businesses going bankrupt with debts of at least 10 million yen, or more than 63,000 dollars.

This is the first time since May 2012 that bankruptcies surpassed 1,000.

Teikoku Databank said labor shortages have also led some businesses to file for bankruptcy. It said small and medium-sized companies are facing the challenges with offering higher wages and securing enough workers.

Source: Qatar News Agency