TOKYO, Feb. 6 (Xinhua) -- The number of corporate bankruptcies in Tokyo surged in January due to high costs and labor shortages, data from Japanese credit research company Tokyo Shoko Research showed.
The number of corporate bankruptcies, involving liabilities of at least 10 million yen (about 65,500 U.S. dollars), increased by 16 percent year-on-year to 152 cases for January, the data showed.
This marks the second consecutive month of year-on-year growth and the first time in 11 years that January bankruptcies have exceeded 150 cases as persistent high costs and labor shortages have hindered business recovery for many firms.
Total liabilities associated with these bankruptcies amounted to 21.6 billion yen (141.4 million dollars).
By industry, the service sector saw the highest number of bankruptcies at 60 cases, an 18-percent increase year-on-year.
Tokyo Shoko Research noted that the financial strain from rising wages is contributing to the increase in bankruptcies, with no clear resolution to inflation in sight. The report warned that business failures in Tokyo are likely to continue rising. ■
