The Government is being urged to use the Budget to fund job creation schemes, despite a new report saying they don't work.
The New Zealand Institute of Economic Research predicts another 50,000 people will lose their jobs in the coming year.
It says job subsidies save very few positions and it's better to fund training and job search initiatives.
However, Council of Trade Unions says the Government could quickly create jobs by insulating homes and improving the road and rail network.
The CTU is supported by Business New Zealand, which says spending on the right projects makes sense.
The 2009 Budget is due to be delivered on 28 May.