No mass redundancies expected from China’s economic restructuring – official

China’s economic restructuring – from a manufacturing to a consumer-led economy – will not result in large-scale layoffs sound fundamentals and new growth engines, China’s economic planner said, Xinhua reported.

China’s economy will maintain a medium-to-high growth rate this year, providing a solid basis for a steady job market, said National Development and Reform Commission spokesperson Zhao Chenxin.

Zhao also cited advanced reform measures, mass entrepreneurship, innovation and stronger government support for employment as favorable factors that will help support the job market.

The economy recorded the slowest growth in 25 years in 2015, expanding 6.9 percent year on year, fueling concerns over job losses, especially in industries with excessive capacity.

Zhao acknowledged there would be redundancies in some industries but said the government would distribute funds to help workers reestablish themselves should they lose their jobs.

The government has said that up to 400,00 jobs could be lost as China restructures its steel industry.

The registered unemployment rate in China’s cities was 4.05 percent at the end of 2015, unchanged from three months earlier, latest official data showed, Xinhua said, adding that China created 13.12 million new jobs for urban residents last year, exceeding the official target.

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