China plans to assist 500,000 workers made redundant during its capacity cuts in steel and coal sectors this year.

Subsidies will go to employers that re-employ laid-off staff in other posts inside the company, and the government will offer free retraining, according to spokesperson Lu Aihong of the Ministry of Human Resources and Social Security, Tuesday.

In 2016, the central government spent over 30 billion yuan (4.4 billion U.S. dollars) in providing aid to 726,000 employees affected by the downsizing of the two heavy industries.

The work has to continue as another 50 million metric tons of steel production capacity and at least 150 million tons of coal capacity will be cut this year.

According to preliminary forecasts, the coal and steel sectors will see combined laid-offs of around 1.8 million.

Email: tanyuhan@nbd.com.cn