The Government anticipates up to 70,000 workers may be made redundant during the next two years but insists that does not mean the unemployment rate will rise by the same amount, because people will take advantage of its ReStart assistance package.
The programme is slightly changed from that announced by National in the election campaign.
People receiving redundancy payments of more than $25,000 will not be eligible.
Work and Income figures show 92% of people made redundant received lower payments.
Couples with $16,200 saved or single people with $8100 will also not be eligible.
Social Development and Employment Minister Paula Bennett said people made redundant would get breathing space to adjust to their new situation with the $50 million package.
ReStart will be available for 16 weeks or until full-time work is found - 20 hours for sole parents, 30 hours for everyone else.
"We've wasted no time putting ReStart in place, because people need assurance that help will be there as we move into tougher, more uncertain economic times," the minister said.
It was there to help people get back on their feet.
The programme has three components:ReCover - a payment for families with children and who are no longer eligible for the in-work tax credit of $60 a week for families with up to three children and $15 a week for each extra child.
RePlace - available for those who qualify for the maximum accommodation supplement after they have been made redundant.
It provides up to $100 on top of the maximum accommodation supplement.
The amount received will depend on the region, accommodation costs and size of household.
ReConnect employment and job services - people made redundant between the election and yesterday are eligible to apply for the package, although payments will not be backdated.
People made redundant from yesterday will have 20 working days to apply from the date they are laid off.
ReStart comes into operation on January 1, with redundant workers receiving their first assistance in the first pay cycle after that date, possibly on January 5.
Otago-Southland Employers Association chief executive Duncan Simpson said most of his members would be looking at their business fundamentals and what they needed to do to keep their core operations going until things got better.
"If someone is feeling on the brink, they might feel better about talking to their staff but talking to the banks is probably a more pressing consideration."
Members he had talked to were hoping the economic crisis would not turn out as badly as predicted, although the signs were not good, Mr Simpson said.
Ms Bennett urged employers who might need to make staff redundant, or employees who had been made redundant to contact Work and Income as soon as possible.
It was important to remember than job numbers were still holding up well; good employers valued good staff and would do their best to keep them in work, she said.
Council of Trade Unions president Helen Kelly said there were people who would miss out.
"It does not make sense to have this assistance coming into effect in January and just two months later hitting workers in small and medium-sized enterprises with no right to appeal against unfair dismissal."
