First Union boss Robert Reid says the jobs situation will continue to worsen and he has been in talks with at least two large companies on the brink of receivership.

Unimeg, a union for migrant workers, said such practices were "widespread and common" and migrant workers were continually being exploited because of a lack of official resources.

Rotorua's First Union spokesman Rawiri Daniels said tough economic conditions had severely limited growth in local industries and cut into job opportunities.