BOFIT Viikkokatsaus / BOFIT Weekly Review 2016/11
Longmay’s problems are typical for many publicly owned firms that operate in industries suffering from overcapacity. By official estimates, China’s coal and steel industries will have to lay off 1.8 million workers in coming years. According to some estimates, total of 5–6 million jobs will disappear from industries suffering from overcapacity in coming years. Structural reforms will hit particularly hard heavy industry clusters such as the one found in Heilongjiang.
The China Labour Bulletin reports that the number of worker protests has increased and that about 90 % of these protests involve unpaid wages. Over half of recent demonstrations have involved the construction industry, nearly a quarter manufacturing, and about 6 % mine operators.