China to cut five lakh jobs in coal, steel sector

01 March, Beijing

China Wednesday said it will cut five lakh jobs from steel, coal and other heavy industries to reduce excess production capacity amid slowdown of the world’s second largest economy.

Yin Weimin, Minister of Human Resources and Social Security, announced plans to relocate five lakh workers who faced job losses this year.

Yin said, China’s urban unemployment rate stood at moderate 4.02 per cent last year which is well within the target range despite the economic slowdown.

China makes more than half the world’s steel, but due to drop in global demand has left the industry with massive overcapacity.

China’s economy grew 6.7 per cent year on year in 2016, the slowest pace of growth in 26 years from 6.9 per cent in 2015.