The government on Friday asked companies not to retrench workers, but, if need be, opt for salary cuts to remain viable in these times of economic downturn, which has already claimed 500,000 jobs.

"Jobs must be protected even if it means some reduction in compensation at various levels," Finance Minister Pranab Mukherjee said at International Labour Conference in New Delhi.

Mukherjee later told reporters that in the Interim Budget he had talked of encouraging investments in infrastructure and in housing and real estate, adding that the government is providing adequate resources for programmes like the NREGA and Bharat Nirman.

"(If) more and more good roads are constructed, cement, steel, every thing will be required. (People) will get jobs. These types of programmes should be expedited and adequate resources will be provided," he said.

His remarks came as the government informed Parliament that 500,000 people lost their jobs during the four-month period ending December 2008, on account of economic crisis in sectors including textiles, automobile and IT.

Mukherjee said the social welfare net needs strengthening because it will provide the base for socially harmonious shift in the pattern of employment.