The Chinese government revealed on Saturday its general plans to steel and coal workers who recently lost their jobs, saying assistance includes early retirement, career counseling, and help in starting up a business.

The new suggestions, jointly released by seven Chinese ministries including the Ministry of Human Resources and Social Security, and the National Development and Reform Commission, were based on previously announced plans to restructure the coal and steel industry to lessen industrial overcapacity and help the anticipated 1.8 million workers facing unemployment.

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The new guidelines aim to offer jobs to the affected workers and serve as a buffer to lessen the severe impact of unemployment in social stability.

"Proper placement of workers is the key to working to resolve excess capacity," the labor ministry said. Furthermore, it encouraged  local governments to "take timely measures to resolve conflicts" and "avoid ignoring the issue."

Although the different ministries have inked the plan as early as April 7, it was only released a week after to stress the sensitivity, essence and expanse of resources China is dedicating for the unemployment issue.

The measures outlined on the new document offer early retirement benefits for redundant employees within five years of mandatory retirement age (60 for men and 55 for women), trans-regional cooperation to transfer laid off workers to areas where there is an abundance of job opportunities, and job fairs in companies with at least 100 displaced workers.

Meanwhile, for those who are interested on starting anew through business opportunities, the government will provide training, seed funding and consultation services, with support including tax relief and preferential loans offered for self-employed and newly registered firms.

Without tackling the mismatch skills of coal and steel workers, the plan offers support to firms that create jobs by adopting the "Internet Plus" scheme, establishing new cutting-edge, Internet-related or high valued industrial products and services, and expanding local and foreign markets, the document stipulated.

The central government has allocated 100 billion yuan to extend its help to redundant workers in search for new jobs. If necessary, the funds can be increased and the local governments should take responsibilities according, Premier Li Keqiang said last month.

Tagschina, laid off workers, steel and coal, industrial overcapacity