japan-price-hike-bankruptcies-556-first-half-labor-costA · FULL TRANSLATION
- Empire Data Bank statistics show 556 companies went bankrupt due to high prices in the first half of 2026.
- The primary cause has shifted from raw materials and fuel to rising 'personnel costs'.
- Construction industry saw a year-on-year increase of about 30% in bankruptcies, most significant.
- Potential increase in company closures due to naphtha price hikes expected in the second half.
This data serves as an indicator for assessing Japan's domestic demand and supply chain risks. According to Empire Data Bank statistics, 556 companies went bankrupt due to high prices in the first half of 2026. Previously, such closures were mainly caused by rising costs of raw materials and fuel, but this year, 'personnel costs' have surged, reflecting the pressure on businesses from wage hikes amid labor shortages. The construction industry is hit hardest, with a year-on-year increase of about 30% in bankruptcies, highlighting its vulnerability to both labor and material constraints that cannot easily pass through price increases.
This data serves as an indicator for assessing Japan's domestic demand and supply chain risks. According to Empire Data Bank statistics, 556 companies went bankrupt due to high prices in the first half of 2026. Previously, such closures were mainly caused by rising costs of raw materials and fuel, but this year, 'personnel costs' have surged, reflecting the pressure on businesses from wage hikes amid labor shortages. The construction industry is hit hardest, with a year-on-year increase of about 30% in bankruptcies, highlighting its vulnerability to both labor and material constraints that cannot easily pass through price increases.