John Key

Wellington, Feb 25 NZPA - Surveys show one in five people fear losing their jobs in the recession, but Prime Minister John Key says that isn't going to happen.

The New Zealand Business Council for Sustainable Development, TV One and Research New Zealand released polls yesterday with almost identical results.

About 20 percent of those questioned said they feared losing their jobs because of the economic downturn.

"There's no way one in five New Zealanders will lost their jobs," Mr Key said.

"There's a risk we will talk ourselves into a deeper recession than we're already experiencing. That's one of the reasons we need to keep a bit of perspective here."

Unemployment hasn't reached 5 percent and the worst official forecast is that it will rise to 7.5 percent.

But the surveys indicated people were losing confidence - a danger Mr Key has persistently warned must be avoided.

The Business Council survey, the most comprehensive of the three, showed those on low pay and those earning more than $100,000 were among the most scared.

"The level of concern over job loss is running more than twice as high as the forecast unemployment rate of 7 percent by the end of this year," said Business Council chief executive Peter Neilsen.

"This may have a chilling effect on investment and spending."

But he also stressed the need to be positive about the future, saying most of New Zealand's banks had double A ratings and should be able to continue borrowing and lending.

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