Demographics & Aging Society

Japan's labor shortage bankruptcies reached a record 427 cases in 2025. A critical shift has emerged: employee turnover is now causing more business failures than recruitment difficulties. With 77% of affected companies having fewer than 10 employees, small businesses unable to match wage increases are being pushed out. This article explores the structural challenges in Japan's labor market and how the "quit-driven" bankruptcy phenomenon is reshaping the business landscape.

Bankruptcies and closures among Japanese healthcare institutions hit record highs two years running. How suppressed fee schedules, rising costs, and staff shortages combined, and what the 3.09 percent fiscal 2026 revision changes.