Excess Capacity Reduction in the 13th Five-Year Plan Period: Key Areas of Work for Addressing Inevitable Unemployment



The coal industry has long been a core industry in China's economy, but its overcapacity crisis is becoming increasingly severe. In 2015, coal production reached about 5.7 billion tons. In the three years since China's coal production peaked in 2013, production output has dropped by at least 610 million tons. As a result, there has also been a corresponding drop in employment in the coal industry. Labor statistics show that since total employment in the coal industry hit its peak of 5.29 million jobs in 2013, employment in the industry as a whole began to rapidly decrease. On June 21, the report, "Impact of China's Policies to Address Overcapacity on Employment in the Coal Mining Industry," was published by the Institute For Urban and Environmental Studies, Chinese Academy of Social Sciences and Research Institute for Global Value Chains, University of International Business and Economics. The report finds that reductions in coal mining jobs from excess capacity reduction policies are an inevitable result of the upgrading of China's industrial and energy structure and labor structure optimization. The report analyses employment pressures in China's main coal production regions, such as northeast China, and Shanxi and Inner Mongolia provinces, and points to the need to use tailored policies to address employment in each area.