THE North-East enjoyed a net gain of 4,600 jobs in the past three months thanks to a renaissance in the call centre sector coupled with growth in retail, tourism and leisure.

Details of the improving jobs picture were highlighted in the latest quarterly NewsBase report, compiled by Durham Business School on behalf of One NorthEast.

However, the data showed a chequered picture with job losses higher than in the previous quarter.

Sixteen businesses closed while others contracted, according to the study. Losses from downsizing were concentrated mainly in manufacturing with few new openings in the sector and only modest investment resulting in only 16 new jobs.

One hundred jobs were created in construction.

Retail was responsible for the majority of job gains, accounting for more than half the net change.

Professor Ian Stone said: "Overall, including openings, closures, expansions and contractions in the market, the changes reflect a positive performance for the last quarter."

The report highlighted 780 jobs created in call centres. Other service sectors were dominated largely by the expansion of small, locally-owned firms, where 500 jobs were created.

Regionally-owned firms outperformed those owned nationally and from overseas, making up 60 per cent of net employment growth.