Predictions of job losses are now running as high as 75,000 over the next year. Westpac's chief economist suggests the number could be as high as 50,000.
Now the director of research at the investment firm Goldman Sachs JB Were says that up to 75,000 people could lose their jobs in the next 12 months.
Gross Domestic Product figures released on Tuesday confirm that New Zealand's economy has been in decline for the first nine months of the year. The economy shrank by nearly 1% during that time.
Jobs are already being cut as the business sector steels itself to ride out the recession. Some analysts say it will be a year before the job market stabilises, and economists say businesses need to do what they can to ensure they are in a position to survive the recession.
Shamubeel Eaqub of Goldman Sachs JB Were says if businesses want to survive, they must be prepared. He says that means businesses have to decide which staff they want to keep.
Retaining the most qualified and experienced people will put companies in a better position to recover from the recession, he says. However, Mr Eaqub says that recovery may not be evident for another 12 months.
