http://www.illuminatisilver.comhttp://www.facebook.com/illuminatisilverChina to lay off 1 8 million workers in its Coal and Steel Industry
Today is Monday 29th February 2016 and we are briefly commenting on a Reuters Report out today highlighting that China plans to lay off 1.8 million workers in its Coal and Steel Industry.
Yin Weimin, the Minister for Human Resources and Social Security, told a news conference that 1.3 million workers in the coal sector could lose their jobs, plus 500,000 from the steel sector. China's coal and steel sectors employ about 12 million workers, according to data published by the National Bureau of Statistics. These 1.8 million jobs represent approximately 15% of the workforce and it’s aimed to reduce industrial over-capacity.
The central government will allocate 100 billion yuan ($15.27 billion) over the next two years to relocate these workers.
The world's second-largest economy grew 6.9% in 2015, the weakest in 25 years, and the government aims to achieve economic growth of between 6.5- 6.7% in 2016.
In 2015, the contribution from the services sector to GDP climbed to 50.5% surpassing the 50% level for the first time, and showing China’s intent to move to a more services based economy.
As we stated in previous videos, the economic down-turn is real, and China should be watched closely. This is yet another indication that all is not well with the Chinese economy, and if, as many believe, the Government figures are, let’s just say ‘not as accurate as they could be’, its position is far worse than suggested. If this malaise permeates other sectors it could very well suggest that the Industrial demand for silver may not look too bright in the short term.
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