Japan bankruptcies hit 11-year high on cost pressure

Rising interest rates add to headwinds against small businesses

20250114N Construction worker REUTERS

Bankruptcies in Japan's construction industry climbed due to a shortage of manpower caused by new overtime rules.  © Reuters

KAZUMA SHIROKAWA, Nikkei staff writer

TOKYO -- The number of business bankruptcies in Japan jumped to the highest level in 11 years in 2024, as smaller companies succumbed to the higher costs of materials and labor.

Bankruptcy cases rose 15.1% last year to 10,006, Tokyo Shoko Research said in a report released Tuesday.

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