THE North-East faces a dismal decade of unemployment as the North- South divide continues to grow, a think-tank has warned.

Economic forecasters say it will be 2020 before employment figures in the region return to 1990 levels and many more years before they reach the levels recorded in 2008, when the number of people in employment peaked across the UK.

The report, published by the Institute for Public Policy Research (IPPR) North, also suggests that Yorkshire and the Humber will have to wait until 2019 for the job situation to recover and hit the 2008 peak.

The stark warning for the North-East contrasts with the outlook for London and the South-East, where employment levels are expected to recover in three years.

The IPPR report also shows that unemployment rose by 1.5 per cent in the North-East and 1.1 per cent in Yorkshire in the last quarter – unemployment now stands at more than ten per cent in the North-East.

Ed Cox, director of IPPR North, said: “The situation outside London and the South-East is looking bleak, particularly in the North-East where the jobs recovery is expected to take more than a decade.

“This new research is alarming, and something urgently needs to be done to stop the gulf widening and people in the worst-affected areas suffering a dismal decade.

“But there are things that can be done right now to help and a jobs guarantee would be a good place for (Chancellor) George Osborne to start.

“This would help boost employment in the areas that need it most and offer some hope to people who are long-term unemployed.”