Japan’s Labor Shortage Results to More Bankruptcies
Based on last year’s statistics, more Japanese firms have went bankrupt as a result of labor shortage in Japan, which reveals the growing number of the country’s present labor crisis on companies that fail to secure or keep employees.
According to Tokyo Shoko Research, there are around 362 such cases of bankruptcies last year until November, more than 20% up on the year. The total has already surpassed the entire year 2015 wherein 340 cases of bankruptcies have been recorded. It is the highest since the said research firm started recording this data back in 2013.
The number of companies that has to cease their operations due to lack of enough employees to handle the necessary work increased 66% to 53, while another 24, which is a 71% increase, raised compensation to embrace the existing staff but could not stand the increased costs.
A sum of 261 firms ceased its business operation due to the fact that the head of business felt ill or came up to retirement age without having a successor, up 13%.
Apparently, such problem is specifically severe in the service sector such as restaurant industry, nursing homes and health care providers for the elderly and even trucking companies.
The country’s slow but firm recovery has managed to elevate the ratio of job openings to job applicants to a higher level since 1974. Employees typically fall to industries offering better employment conditions like higher pay and lighter job loads.