Hot topics | Coronavirus pandemic

About 36,000 Companies Closed In Japan Due To Coronavirus

About 36,000 Companies Closed In Japan Due To Coronavirus

The number of companies that have ceased to exist in Japan or are forced to stand idle has increased by 24% compared to last year due to the impact of the coronavirus, NHK reported, citing research by Tokyo Shoko Research.

From January to August, inclusive, 35.8 thousand companies ceased to exist. That is 23.9% more than in the same period last year. If the growth of failed enterprises continues at the same pace, then by the end of the year, there will be more than 50 thousand of them, the study says. That will be the largest indicator in all 20 years of research.

The company also reports that at least 61 large companies listed on the Tokyo stock exchange offered their employees early retirement. This measure will affect 10 thousand people.

Tokyo Shoko Research believes that if now it is mainly the enterprises of the hotel, restaurant business, and clothing stores, then in the future, if these trends continue and there is no noticeable improvement, the process may extend to the production sector.

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