(ECNS) -- China's plan to slash its steel production capacity could eliminate millions of jobs, accordingto Economic Information Daily.
China's leaders have vowed to reduce industrial overcapacity even as they battle the slowest growth in a quarter of a century. The effort to transform industries could translate into millions of lost jobs, the report said.
As China's economy slowed in the past year, overcapacity, especially in heavy industries, has become one of the biggest imbalances in the economy.
In the next three to five years, coal production might shrink by some 500 million tons while steel production might be reduced by 100 million to 150 million tons, according to National Development and Reform Commission, China's top economic planner.
This prospect might raise the threat of mass unemployment and the central government should take affirmative measures towards labor resettlement, it was said.
A recent State Council meeting led by Premier Li Keqiang emphasized the necessity to redeploy or support employees laid off by plant closures.
The central government has accumulated experiences and made achievements in protecting the lawful rights and interests of workers and retraining staff in State-owned enterprises, Li said.
The State Council said China would take further steps and raise funds to help laid-off workers with measures including proper payment of wages and social security, help in starting new businesses or transferring to other industries, and ensure assistance is timely. The central government will also spend 100 billion yuan ($15.3 billion) every year for up to five years to address overcapacity in sectors such as steel and coal.
The emergence of new industries such as the rapid development of digital economy has provided new jobs and business opportunities for workers and employers.
