Growth

Mass layoffs in China

China wants to cut the 1.8 million workers in the Overcapacity suffering coal and steel industries. This corresponds to 15 percent of all workers. It is unclear in which period of time this is to be done.

Labour Minister Yin Weimin said that 1.3 million workers in the coal sector, and 500,000 can lose in the steel sector, their Jobs. In both sectors, a total of twelve million people are employed, according to the national statistics authority. “It will come to relocation, for a total of 1.8 million workers,” – said in a notification. “It will be a very difficult task,” said the Minister for labour and Social security, Yin Weimin, on Monday in Beijing. “But we are very confident.”

The leadership in Beijing wants to reduce in the next three to five years, the capacity of coal production of about 500 million tons per year, steel production will be reduced by 100 to 150 million tons per year. “The economy is facing a relatively large exposed to downward pressure,” said Yin. “Some companies have a hard time with production and operation, which can lead to poor employment.” To avoid social unrest, to create new jobs and debts of the bankrupt going to pay companies, the government is providing the equivalent of almost 15 billion euros in the next two years.

However, the plans are not likely to be sufficient to bring the industry up to scratch: it is estimated that the steel Overcapacity are alone at 400 million tonnes a year, and the industry Association expects a rise in the current year. The coal was last expanded massively.

Less exports, more consumption

The industry in the USA is the second largest economy in the world, is increasingly losing importance. In the service sector, more than half of the economy accounted for in the last year for the first time performance. The official unemployment rate is currently around five percent.

The government wants the economy to rebuild and towards greater domestic consumption and a lower dependence on exports. She takes after years of boom, also a slower growth. The Balance between reforms and economic stability had to be preserved, said the Central Bank in the past week. The gross domestic product has not increased in 2015, with 6.9 percent as slow as since a quarter of a century. The government expects this year with a Plus of 6.5 to 7.0 percent.

iw/whom (rtr)