The number of corporate bankruptcies in Japan in fiscal 2024 climbed 12.0% from the previous year to 10,144, topping 10,000 for the first time in 11 years, Tokyo Shoko Research said Tuesday.

The annual figure rose for the third consecutive year.

The result reflected a surge in the number of bankruptcies due to labor shortages, particularly among small and midsize companies, and rising prices.

The number of business failures linked to soaring labor costs and labor shortages increased 1.6 times to 309, the highest since fiscal 2013.

The number of bankruptcies attributed to high prices for materials and others rose 2.0% to 700. Failures of companies that had received interest-free, unsecured loans after suffering sales declines due to the COVID-19 pandemic numbered 529, down 15.0%.

Bankruptcies increased in eight of the 10 surveyed sectors. The construction industry posted a 9.3% rise in the bankruptcy number to 1,943, reflecting higher costs due to a weak yen. The number of failures in the manufacturing sector rose 17.1% to 1,179.

By contrast, the number of bankruptcies slid 3.8% to 424 in the transportation sector, marking the first decrease in four years, as companies in the sector passed on rising costs to customers.

Total liabilities left by failed companies in fiscal 2024, which ended in March, fell 3.6% to ¥2.37 trillion, while topping ¥2 trillion for the third straight year.

In March alone, the number of bankruptcies fell 5.8% from a year earlier to 853, with total liabilities decreasing 30.6% to ¥98.5 billion.

A Tokyo Shoko Research official said that the number of corporate bankruptcies is expected to "rise moderately" amid growing concerns about the impact of U.S. President Donald Trump's high tariff policy.