China Expects 1.8 Million Coal and Steel Worker Layoffs

Bloomberg reports;

About 1.3 million workers in the coal industry and 500,000 in steel will be cut, Yin Weimin, human resources and social security minister, said Monday, according to a transcript posted on the government’s website. The employees would be reallocated, Yin said, without providing further details.

The world’s largest steel and coal producer is seeking to ease a glut of industrial capacity as its economy shifts toward consumer-led growth and as it tries to curb pollution. The government has set up a 100 billion yuan ($15.3 billion) fund to be spent over two years to help companies resettle workers cut during restructuring.

This layoff has to be one of the largest ever recorded in history, but we fear it only be the start of something new and something very big.

We are entering uncharted territories now, but the wider results should be known to those who understand history and can see the tea leaves of the future.

Zerohedge reports;

Today, Reuters finally peels away the first layer of just how bad China’s mass layoff wave will be when it reports that China aims to lay off 5-6 million state workers over the next two to three years as part of efforts to curb industrial overcapacity and pollution.

This admission, the first of many, will cost China.

Are we paying attention boys and girls, class is in session. There will be a quiz at the end of the class. Shoulder shrugs and Coincidence Theories will not suffice as answers in this quiz. Good luck.
 

Sources:

• http://www.bloomberg.com/news/articles/2016-02-29/china-expects-1-8-million-coal-steel-layoffs-on-capacity-cuts
• http://www.reuters.com/article/us-china-economy-employment-idUSKCN0W205X
• http://www.zerohedge.com/news/2016-03-01/chinas-mass-unemployment-wave-begins-six-million-workers-get-pink-slips