China is looking to rehabilitate millions of workers potentially to be laid off from steel and coal industries. Following global trends, China's steel and coal sector are likely to perform lukewarm. The country has drafted new policies to provide counseling including career guidance to the workers. These sectors are expected to axe off 1.8 million workers.

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As per new guidelines, the workers will be offered assistance to plan for early retirement as well as for starting their own businesses. The measures also include efforts to find new jobs for the laid off workers. The document states, "Proper placement of workers is the key to working to resolve excess capacity."

The current approach followed by the Chinese government is a far cry from its efforts two decades back when it tried massive restructuring of state run industries. Currently, the steel and coal sector in China is going through glut stage. In order to counter the trend, the Chinese government is looking to reduce excess capacity by 10 to 15 percent.

The released document also enumerates other plans such as providing early retirement benefits for people who are within five years of mandatory retirement. The age for mandatory retirement stands at 60 years for men and 55 years for women. The government also plans to hold job fairs at companies which have laid off more than 100 workers. It also seeks to offer seed funding, consulting services and training to people looking to start their own businesses.

The Chinese economy has been facing stagnation for quite some time. However, its employment numbers held up despite the swings. According to government releases, the economy gained 13 million new urban jobs last year.

Tagschina, Economy, steel industry