Some 11,549 businesses went bankrupt last year, according to data compiled by finance service company Graydon, Belga News Agency reported on Monday. This marks a 7.2% increase compared to 2023.
Jobs losses as a result of bankruptcy also reached a record high. Overall, 27,187 people lost their jobs in Belgium, 15,533 of whom were working in Flanders, 7,297 in Wallonia and 4,233 Brussels.
The pressures felt by businesses in the country stem from an economic environment weakened by crises in Europe, the Ministry of Economy said in December. "The prolonged conflict in Ukraine plays a significant role," the Ministry added.
Last year was a "bad year" for businesses, according to the VUB assistant professor specialised in labour economics, Eva Van Belle. However, exceptional mass layoffs make it difficult to discern whether the trend of rising job losses will be felt in 2025 as well.
Examples of such exceptional layoffs include jobs lost within the automotive industry, which has had a significantly tough year across Europe. In Belgium, for example, the Audi Brussels plant announced its closure, impacting some 3,000 people.
Protestors pictured during a demonstration by Audi Brussels workers. Credit: Belga / Dirk Waem
High labour costs are just one of the difficulties facing the manufacturing industry in countries like Belgium, Van Belle told The Brussels Times in December. Many companies have started moving production to countries such as China or Mexico, where labour wages are significantly lower.
Moreover, increases in interest rates for loans as well as higher wages have also complicated the survival of businesses in Belgium, the chief economist with Flemish business association Voka, Bart Van Craeynest, previously told The Brussels Times.
Mass layoffs at large companies are difficult to prevent. However, changing taxation rates, investing in training for those who have lost their jobs and ensuring they have access to an adequate benefit system, could help improve the situation in the country, Van Belle explained.
