A predicted rise in unemployment throughout New Zealand has prompted a warning that workers should be prepared to do other jobs.
Business leaders in Otago say people in their region will have to be flexible, with the Treasury forecasting that unemployment could rise from 4.2% to almost 6%.
Fisher & Paykel, Silver Fern Farms and Cadbury announced redundancies in the Dunedin area this year - affecting about 700 jobs.
The Otago Chamber of Commerce says the region had not seen job losses on such a scale since the late 1990s.
Chief executive John Christie says workers might have to switch to different sectors, such as horticulture, if there are big job shortages.
Mr Christie says Otago businesses are the most pessimistic they have been in 15 years, and he expects businesses in other parts of the country could be in a similar position.
F&P won't rule out more job losses
Major appliance maker Fisher & Paykel says it is reviewing its business daily and cannot rule out further job losses.
The company on Thursday revealed a loss of $7.3 million in the six months to September due to falling sales and the cost of moving its production to Thailand and Mexico.
Managing director John Bongard told Morning Report on Friday that the international credit crisis has hastened the business slowdown that was already coming.
Mr Bongard says Fisher & Paykel is focused on cutting costs - including staff - and preparing for the market rebound once the crisis is over.
"We're reviewing our business daily because the markets are fluctuating wildly. So we can't rule out any futher job losses in any of the markets or the factories that we operate globally."
However, Mr Bongard says Fisher & Paykel is developing a number of new product lines.
Tight operations to retain staff
Manufacturers say the economic slowdown is forcing them to run tight operations as they try to hold on to skilled workers.
On Thursday, a key manufacturing survey showed activity in the sector at its lowest ebb since at least 2002.
The BNZ Business New Zealand monthly manufacturing index showed production, employment intentions and stock levels falling away again in October for the sixth month in a row.
It is the longest consecutive period of contraction since the survey began in 2002.
However, the Employers and Manufacturers Association says the economic climate allows businesses to give staff new training, introduce new processes and make working hours more flexible.
The association's northern director, Bruce Goldsworthy, says when good staff are lost in a downturn, it is difficult for employers to lure them back during an upswing.
