Cities cannot rely on concentrations of public sector jobs to see them through the recession, a think-tank has warned.

The annual review by Centre for Cities said places with highly skilled and adaptable workforces were likely to recover fastest

Its report published on January 26, predicted that the recession would be over earlier in the South, despite the job losses in financial services and the relative success of regeneration in creating jobs in the North. 'Some of the very same urban areas that led employment gains in recent years will be at the forefront of job losses in the months ahead,' it said.

Financial centres such as London, Leeds, Edinburgh and Bristol had lost jobs, but in the medium term their diverse business bases, high skill levels and entrepreneurship made them the best-placed for recovery.

Places with weaker economies might have fewer short-term job losses, but the recession would worsen deep-seated problems in cities with low skill bases such as Hull and Liverpool. …