Tags: china | layoffs | 5-6 million | jobs | state | coal | steel

China Layoffs: 5-6 Million State Jobs, 1.8 Million in Coal, Steel

Image: China Layoffs: 5-6 Million State Jobs, 1.8 Million in Coal, Steel

A closed steel factory in Tangshan, China. (REUTERS/Kim Kyung-Hoon)

By    |   Wednesday, 02 Mar 2016 07:43 AM

China's expected government layoffs could total five to six millions state workers, sources told Reuters for an exclusive report. Other reports said nearly two million coal and steel workers also would be let go.

The sources told Reuters that China will spend in upwards of $23 billion to cover the cost of layoffs in the coal and steel industries. The moves are being made, according to Reuters, to control industrial overcapacity and pollution.

The Business Insider reported China's minister for human resources and social security, Yin Weimin, said in a news conference that 1.3 million workers in the coal sector could lose jobs, plus 500,000 from the steel sector.

"This involves the resettlement of a total of 1.8 million workers," Yin said. "This task will be very difficult, but we are still very confident."

According to the country's National Bureau of Statistics, the coal and steel sectors in China employ about 12 million workers, said Business Insider. China had previously announced that it planned on slashing some 150 million tons of crude steal capacity and 500 million tons of surplus coal over the next three to five years.

Pakistan's Daily Times said China planned to relocate laid off workers over the next two years at a cost of $15.27 billion. It said China's Premier Li Keqiang told U.S. Treasury Secretary Jack Lew on Monday that the money would target steel and coal employees.

Jiang Feitao, an industry researcher at the Academy of Social Sciences, a China government think tank, said that the layoffs appeared reasonable according to the government's capacity target dates,per the Daily Times.

"It's difficult to predict a time frame, but it will not be a quick process," Feitao said. "There are many issues to be dealt with, including how to pay debt as well as layoffs."

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China's expected government layoffs could total five to six millions state workers, sources told Reuters for an exclusive report. Other reports said nearly two million coal and steel workers also would be let go.
china, layoffs, 5-6 million, jobs, state, coal, steel
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2016-43-02
Wednesday, 02 Mar 2016 07:43 AM
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