TOKYO, March 9 (Bernama-Xinhua) -- The number of corporate bankruptcies in Japan rose 11.3 per cent in February from a year earlier to 851, the highest level for the month in 13 years, as businesses continued to face pressure from labour shortages and rising prices, reported Xinhua quoting local media.
A total of 47 companies cited labor shortages as a factor behind their bankruptcies, exceeding 40 for the first time in five months. Meanwhile, inflation triggered 69 bankruptcies, marking a year-on-year increase for the third consecutive month, Kyodo News reported, citing a survey released by Tokyo Shoko Research.
Industries that rely heavily on labor were hit hardest by higher costs stemming from worker shortages, with construction, shipping, and food services accounting for a large share of the business failures.
Bankruptcies among eateries reached 83 in February, up more than 30 per cent from a year earlier.
Total liabilities in February dropped 22.2 per cent from the previous year to around 133.1 billion yen (about US$839 million). Over 80 per cent of the bankrupt firms reported liabilities of less than 100 million yen.
--BERNAMA-XINHUA
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