Feel the pinch! Japan's small and micro-sized firms are in a squeeze 😬 thanks to labor shortages and rising operating costs. This trend, dubbed the "Takaichi Fallout", raises fresh doubts about whether PM Sanae Takaichi's new fiscal playbook can really offer relief.
According to Tokyo Shoko Research, from April to September 2025, Japan saw 5,172 corporate bankruptcies with liabilities of at least 10 million yen (about $64,000). That's a 1.5% uptick from a year earlier and the highest level for this period in 12 years. Failures have climbed for four straight years, with small players feeling the burn of higher wages and mounting expenses.
Key figures from April to September 2025:
- 5,172 bankruptcies (+1.5% YoY)
- Over 70% owed less than 100 million yen
- Record 202 firms citing labor costs & hiring woes
These stats highlight deeper structural weaknesses in Japan's economy. With small firms, often the backbone of local communities, struggling the most, many are asking: Can PM Takaichi's fiscal strategy really turn the tide, or is this just the start of Japan's "Takaichi-cost"? 🤔
For young entrepreneurs and investors, this means watching policy shifts, digital innovations, and talent programs closely. Will new incentives offer a lifeline? Stay tuned as Japan navigates these choppy waters! 🌊
Reference(s):
'The Takaichi Fallout': Rising bankruptcies test Japan's economy
cgtn.com
