THE North should brace itself for job losses in the coming years, according to a report due out next month.

The document, by Experian Business Strategies, which specialises in regional forecasting, will predict a sharp widening of the traditional North-South divide, with economic growth and jobs concentrated in the South until 2012.

The report will say that although public sector jobs have increased in the North in recent years, the trend is unlikely to continue.

Latest figures show that in Middlesbrough, 38.1 per cent of the workforce work for national and local government.

Dr Neil Blake, director of Experian, said: "The North has done well because of public sector spending and construction over the past four to five years and London has had a hard time.

"We think these factors are temporary. There's been an awful lot of spending on health and education but that can't go on forever.