China Expects 1.8 Million Coal, Steel Layoffs on Capacity Cuts
About 1.3 million workers in the coal industry and 500,000 in steel will be cut, Yin Weimin, human resources and social security minister, said Monday, according to a transcript posted on the government’s website. The employees would be reallocated, Yin said, without providing further details.
The world’s largest steel and coal producer is seeking to ease a glut of industrial capacity as its economy shifts toward consumer-led growth and as it tries to curb pollution. The government has set up a 100 billion yuan ($15.3 billion) fund to be spent over two years to help companies resettle workers cut during restructuring.
This layoff has to be one of the largest ever recorded in history, but we fear it only be the start of something new and something very big.
We are entering uncharted territories now, but the wider results should be known to those who understand history and can see the tea leaves of the future.