Chinese steel and mine industry to shed 1.8 million jobs
Chinese government announces dismissal of around 1.8 million mine workers in coal and steel sectors.
BEIJING (AA) - The Chinese government announced Monday that the country will lay off 1.8 million coal mine and steel workers.
According to the South China Morning Post, the decision was announced by Yin Weimin, minister for human resources and social security, in a press conference.
Yin said the decision to cut the jobs was tough, but the government is "confident" of a smooth transition.
Official data indicated that in 2015 China recorded a consecutive drop in coal use for a second year, with consumption down by 3.7 percent.
Earlier this month, the State Council said that China will not approve any new coal production capacity over the next three years.
It added that it will remove about 500 million tonnes of production capacity over the same period to combat so called “zombie” coal firms.
"Zombie" firms are commonly defined as loss-makers which, helped by low borrowing costs, only survive to service their debts.