Announced closures at Fisher and Paykel, Tamahine Knitwear and PPCS Burnside, coupled with rising energy costs and commodity prices, had dented people's confidence in the economy, but the economic downturn was likely to be brief, he said.
"Good days aren't going to go on for ever, and the recent closures remind us that we are competing in a global environment that is experiencing some troubles.
Local businesses are saying that after a period of sustained growth, times will not be so good but they expect to trade through the other side."
Many businesses were still reporting full export books and while the outlook was less positive over the next six months, "we are expecting the economy to improve", he said.
After six years of sustained economic growth, businesses were beginning to tighten their belts but there was still a demand for workers, a relief to those who had been made redundant.
"It is important that these people stay in the area and find new jobs."
There was also a possibility redundant workers could start their own business, boosting the economy in the future, he said.
Dunedin city councillor John Bezett, chairman of the council's economic development committee, said the job losses were "devastating" for those involved. But he did not believe the losses were necessarily a pointer to an economic downturn.
Job creation in Dunedin had outstripped losses, he said.
Dunedin was part of the global economy, and the sort of job losses in the past few weeks were evolutionary.
"Companies have to do that all the time," Mr Bezett said.
Asked what the city could do to weather the storm, he said Dunedin now had a strong business base, because of factors including the resurgence of the Otago Chamber of Commerce and help given to businesses by the council.
"That's not going to fall over."
While the sheep and beef industries were in uncertain times, Balclutha-based company Clutha Chain Mesh Products, which specialises in dairy shed design and construction, was enjoying one of the biggest growth periods in its 25-year history.
The company had added 20 staff over the past 12 months, and would employ more seasonal workers during the off-season, chief executive Paul Whelan said.
"The dairy industry is well placed at the moment and it doesn't look like there will a slowing-up of conversions for quite some time. We expect business to be reasonably comfortable over the next three years."
