Government plans to counteract job layoffs

The Kiwi economy is not getting any better. Lay off of workers is on the rise that's why the Labour government has laid out its plans to keep people in work if the economy slips further, listing three main areas in which government spending will be brought forward.

The Prime Minister said she would bring forward a $1 billion project to insulate older homes and other energy saving measures, give local bodies more money for road works and public transport projects, and start the rollout of superfast Internet broadband early if necessary to create jobs.

Labour however, is also planning to cut immigration numbers to protect Kiwi jobs. With less than 200,000 work permits issued in the year to July to cope with a skills shortage, it sees plenty of reasons to turn the tap off in trades such as building and the hospitality industry if work begins to drop off.

The government predicts that about 50,0000 people could be jobless the economic downturn starts to bite - a prospect that has National and Labour focused on the likely fallout.

Both parties announced their respective packages last week designed to cushion the impact on workers affected by layoffs. Likewise, the parties are both pointing to infrastructure spending as a way to create work.

Labour government said the measures announced yesterday would be brought forward in any areas affected by job losses.

The extra funding for local councils would allow them to start early on projects such as walking and cycling facilities, street lighting upgrades, footpath renewals and local road maintenance.

The $1 billion project to insulate homes and the broadband rollout would also create jobs. Spending would be brought forward on a regional basis and be determined by the extent to which an area was suffering from job layoffs and the likely spinoff in terms of growth in that area.