The Prime Minister says job losses are always incredibly sad

Public housing agency Kainga Ora is proposing cutting more than 320 roles from urban planning and design, construction and investment teams.

It adds to the tally of more than six-thousand public service job losses, to meet the Coalition's demand for agencies to find savings.

Chris Luxon says cuts are a function of the Government tightening its belt - which families and businesses have also been doing for the past two years.

He says unemployment is a lag effect of a poor economy.