Around 230,000 job losses are expected in the North-west by December, 2010, according to a Local Government Association (LGA) report.

Some 6.7 per cent of jobs are set to go in the region, which has performed relatively badly in the last two recessions, the LGA said.

The construction and manufacturing industries will be hardest hit by the economic slump, with high skilled industries looking set to remain relatively unscathed, the report said.

The LGA’s report projects how each area of the country could be affected differently by the economic downturn if no action is taken.

It is warning that a national, blanket policy to deal with the recession will be unable to target help effectively to specific areas.

Cllr Margaret Eaton, chairman of the LGA, said: “The Government has acted at international and national levels and councils are now taking a lead in the effort to find local solutions to local problems.

“It is clear that a national, one-size-fits-all approach to dealing with the recession simply isn’t going to work.”