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Japan bankruptcies up 6.9% in July, labor-shortage record

8/12/2026

Summary

Story summary

Tokyo Shoko Research reported 1,028 companies with ¥10 million-plus liabilities filed for bankruptcy in July 2026, a 6.9% YoY rise.
Total liabilities climbed to ¥236.3 billion, up 41.4% from July 2025, with Zentoshin responsible for ¥115.164 billion.
Labor-shortage bankruptcies hit a record 63 cases, 36 of which stemmed from rising personnel costs.
Inflation-driven bankruptcies rose to 93, the highest since 2022, while the service sector led with 342 filings, over 30% of the total.

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Story summary

Tokyo Shoko Research reported 1,028 companies with ¥10 million-plus liabilities filed for bankruptcy in July 2026, a 6.9% YoY rise.
Total liabilities climbed to ¥236.3 billion, up 41.4% from July 2025, with Zentoshin responsible for ¥115.164 billion.
Labor-shortage bankruptcies hit a record 63 cases, 36 of which stemmed from rising personnel costs.
Inflation-driven bankruptcies rose to 93, the highest since 2022, while the service sector led with 342 filings, over 30% of the total.