Help for laid-off workers in need

The central government recently earmarked a special fund of 27.64 billion yuan ($4.22 billion) to help employees laid off in the country's bid to eliminate manufacturing overcapacity.

The establishment of the special fund is indeed necessary, since finding jobs for the laid-off workers is a top concern at a time when the country is bidding to eliminate overcapacity, a key step toward pushing forward its supply-side reform and industrial restructuring.

Efforts to cut the overproduction in steel, coal, cement and construction materials industries were launched in 2011, but they have made sluggish progress. This can mainly be attributed to the fact that it has not been clearly defined who is responsible for paying the bills for the huge costs involved in this arduous task. Without available funds to relocate and reemploy workers, no local government or enterprise wants to lay off large numbers of workers because of the potential social repercussions.