Summary
In the first half of 2025 (January–June), the number of bankruptcies in Japan’s security services industry reached 16 — twice the number recorded during the same period last year — and is on track to hit a record annual high. Persistent labor shortages driven by low wages and irregular work shifts are taking a toll, especially on smaller operators. Without reforms to improve working conditions and the introduction of AI technologies to reduce burdens, more companies are expected to go under.

• Survey period: January 1, 2000 – June 30, 2025
• Scope: Legal bankruptcies involving liabilities of ¥10 million or more

Security Company Bankruptcies Surged to 16 Cases in H1 2025 — Already Exceeding Full-Year 2024

Bankruptcies in the security services sector, which plays a vital role in protecting public safety at construction sites, events, and other locations, are rising sharply. In the first half of 2025, 16 firms filed for bankruptcy — double the figure from the same period last year (8 cases), and already surpassing the total for all of 2024 (15 cases). This represents the highest H1 total on record and suggests a new annual high is likely.

Labor shortages are a chronic issue in the industry. Of the 16 bankruptcies in H1 2025, at least five were directly linked to staffing shortfalls. A TDB survey found that around 90% of both full-time and part-time employers in the security sector reported labor shortages during the first half of 2025 — indicating a crisis-level situation.

Wage Pressures and Irregular Shifts Behind Labor Shortage

Low pay and poor working conditions are key factors behind the labor crunch. According to the 2024 Basic Survey on Wage Structure, the average monthly salary for a security guard was ¥268,300 — significantly below the overall average of ¥330,400 across all occupations. As labor shortages deepen, competition for workers is expected to intensify. Smaller operators, especially those struggling to turn a profit on low-margin contracts, may find it impossible to keep up with rising wage demands and will be forced to exit the market.

On the working conditions front, irregular hours — including early mornings and late nights — are often unavoidable depending on the assignment. Although workload and risk levels vary by job, there is growing pressure on the industry to improve “workability” amid broader societal expectations around work-life balance. Establishing more worker-friendly shift systems and deploying AI to handle dangerous or demanding tasks are urgent priorities to ensure safer and more sustainable employment environments.