New analysis shows the North East has lost 72,000 public sector jobs in the past ten years.
It means the number of public sector workers has fallen by a quarter - the biggest drop of any region in the country.
Think-tank IPPR North will today join with community groups, union leaders and North of Tyne Mayor Jamie Driscoll to demand an end to austerity and real devolution of power and resources.
Mr Driscoll said: “Austerity has had a devastating impact on communities up and down the country. It has widened the north-south divide, with huge cuts in the North East compared to London and parts of the south.
“If we’re going to create prosperity that everyone can be part of, we need to bring decision making to the North East, so we're in control of our economic future.
“Devolving powers and budgets from Whitehall is the way forward. It’s the best way to build a fairer and more sustainable economy, and end the cruelty that is austerity.”
It comes as Chronicle Live continues our Power Up the North campaign, which is calling for the North to receive investment and real power to run its own affairs.
Stark figures released by IPPR North show that the number of public sector workers in England has fallen by 824,000 since 2009.
The figure in the North East has fallen by 24% - while in London it is down by just 9%.
And the the number of civil servants employed by Whitehall has actually risen, suggesting that the UK is becoming even more centralised.
But despite the odds, productivity growth in the North East is amongst the highest in the UK, averaging 2.2% per year.
This is joint top with the West Midlands in England.
Mr Driscoll is to speak at an event in Newcastle looking at what “economic justice” means for the North East, also attended by representatives of Asian Business Connexions, which supports the Asian business community; trade union group the TUC; Voluntary Organisations’ Network North East, and Tyne and Wear Citizens, a community campaigning group with connections to churches and other places of worship.
The event builds on the work of the high-profile Commission on Economic Justice, whose commissioners included the Archbishop of Canterbury, Justin Welby.
The Commission reported in 2018 and argued that the UK economy is broken- setting out a ten-point plan for reform.
Sarah Longlands, Director of IPPR North said: “We are delighted that the Centre for Economic Justice has chosen to join IPPR North in Newcastle to spark a nationwide conversation about how to deliver economic justice for all people across the UK.
“Despite the North East’s resilience, austerity has reaped untold damage on communities across the region.
“If we are serious about building a stronger northern economy, then we need to start by delivering greater economic justice to the people who live and work here.”
Carys Roberts, Chief Economist at IPPR and Head of the Centre for Economic Justice, said: “The economy isn’t working for people the North East, and it isn’t working for the vast majority of people across the UK either.
“We must demand a radical change in the way that our economy works, and who holds the power.
“As part of this, we need a new ‘economic constitution’ for the UK, devolving more powers to regions like the North. Only then will we begin to address the deep imbalances that affect people in the North East, because a fairer economy is a stronger economy.”
