Japanese businesses are facing further difficulties. According to survey data released by the Japanese credit research firm Tokyo Business Research on July 8, in the first half of 2026, the number of companies in Japan with debts exceeding 10 million yen (approximately 419,000 RMB) that went bankrupt reached 5,346.
According to the Japan Keizu Shimbun, this number increased by 7.1% year-on-year, marking the first time in 12 years that the number exceeded 5,000 in half a year. In June alone, the number of corporate bankruptcies in Japan reached 1,021, a year-on-year increase of 20.4%. It was the first time in 25 months that the number exceeded 1,000 in a single month.
The Tokyo Business Research Institute stated that the depreciation of the yen has led to an acceleration in inflation, putting pressure on the financial conditions of businesses, especially small and medium-sized enterprises.
Simultaneously, Japan's long-standing labor shortage problem has also become an "against the wind factor" for business operations. A senior official at the organization warned that "the speed of bankruptcies could accelerate further beginning this autumn."
Data shows that small businesses with fewer than 10 employees account for 90% of all bankruptcies, and those with liabilities less than 100 million yen make up nearly 80%.
In addition, the number of Japanese companies that went bankrupt due to rising prices increased by 27.6% year-on-year, reaching 439 companies. The number of companies that went bankrupt due to labor shortages also increased by 37.7% year-on-year, reaching 237 companies. Among these, 120 companies went bankrupt due to soaring labor costs, which is 2.4 times the number seen in the same period last year.
In terms of industries, the number of companies going bankrupt has increased in 8 out of the top 10 industries in Japan. Among them, the service industry has the highest number of bankrupt companies, with 1,819 firms, a year-on-year increase of 7.2%. The construction industry ranks second, with 1,026 bankrupt companies.
The Tokyo Business Research Company pointed out that the catering industry and the food retail sector are affected by consumers reducing their spending. Many companies are finding it increasingly difficult to pass on rising costs by raising prices, leading to increasing operational pressure.
In terms of regions, the number of corporate bankruptcies increased in all but the Northeast region among Japan's nine major areas. Among them, the Chubu-Kanto region saw the highest increase, with a year-on-year growth of 37.3%, and the Hokkaido region in the north experienced a growth of 17.1%.
Regarding the future, the Tokyo Business Research Company indicates that the situation in the Middle East has already begun to affect the capital turnover of Japanese small and medium-sized enterprises. The business operating environment still faces uncertainties.
