China announced today that it's created a 100bn yuan fund to lay off nearly two million workers in its embattled coal and steel sectors.
Yin Weimin, the minister for human resources and social security, told a news conference that 1.3m workers in the coal sector could lose their jobs, in addition to 500,000 from the steel sector, Reuters reported. No timeframe was given for the layoffs.
"This involves the resettlement of a total of 1.8m workers. This task will be very difficult, but we are still very confident," Yin said.
Beijing will allocate 100bn yuan over two years to relocate the workers affected, as part of its efforts to deal with industrial over-capacity amid slowing growth.
China's economy is transitioning to a “new normal” of lower growth, driven by domestic consumption instead of credit-fuelled investment.