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Labour-shortage bankruptcies hit a record 418 in ten months; employers resist mandatory rest intervals

Tokyo Shoko Research counts 418 labour-shortage bankruptcies from January to October, already above all of 2025. Employer members of an MHLW panel oppose making work intervals mandatory, and the SSW food-service backlog stands at about 7,000 applications.

Data

Labour-shortage bankruptcies reach 418 in ten months, a record

Tokyo Shoko Research reported 934 company failures in October, down 3%, but 50 were labour-shortage cases, up 35%. The January to October total of 418 already exceeds the 398 of 2025, the previous record for a full year.

Why it matters: Pay and staffing pressure is now forcing small firms under. If you depend on small suppliers, check how exposed they are to wage costs and vacancies.

Source: NikkeiJapanese

Related: Japan Job-to-Applicant Ratio (September 2026): Where Hiring Is Hardest · Japan Pay Rises 2025: 4.4% Average, by Size and Industry

Law and policy

Employer members resist mandatory rest intervals at MHLW labour conditions panel

At the labour conditions subcommittee, employer-side members argued that obliging all firms to adopt a work-interval system does not fit workplace realities and urged caution. Labour-side members wanted it made mandatory, with penalties considered. It is currently only an effort obligation.

Why it matters: No decision yet, but a mandate is on the table. Check whether your shift patterns and overtime rules would allow a fixed rest gap between working days.

Source: Rodo ShimbunJapanese

Related: Work interval system (勤務間インターバル): what it means in Japan · Labour Standards Act overhaul: limits on consecutive working days, rest intervals and discretionary work under discussion

Foreign workers

Immigration agency: about 7,000 food-service SSW applications still waiting

As of 10 November, certificates of eligibility are being issued for applications received up to 16 February. Pending are 446 from late February, 1,806 from March and 4,731 from 1 to 12 April. Applications received from 13 April, when intake was suspended, are generally not issued.

Why it matters: If you plan to bring in food-service staff under this status, assume long delays and have a fallback. Check each candidate's receipt date and status expiry now.

Source: Immigration Services AgencyJapanese

Related: Foreign Workers in Japan 2025: 2.57 Million by Visa and Country · Tokutei gino (特定技能): what it means in Japan

Workplace

Shimane inspections: overtime violations fall, but long hours worsen among offenders

Shimane Labour Bureau reported that the overtime violation rate at inspected workplaces fell 10.5 points to 28.4% last fiscal year. Among workplaces with violations, 55.6% had someone over 80 hours of overtime in a month, up 17.7 points. The bureau is watching for polarisation.

Why it matters: Inspectors are not easing on serious overwork. If any employee approaches 80 hours a month, expect scrutiny and review workloads now.

Source: Rodo ShimbunJapanese

Related: Paid Leave in Japan 2025: 66.9% Taken, Hours, Retirement Age · 36 Agreement (36協定): The agreement that makes overtime legal in Japan

Compiled each weekday morning with AI assistance from the reports linked under each story; summaries are ours, the reporting is theirs. Check the source before acting on anything here. Corrections: editor@hardestmarket.com.

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