Joe Anderson will govern Liverpool for the next four years and is now the most powerful politician in England outside London.
Speaking after the result of the ballot was announced, he said: “We will deliver on our pledges and our promises, the people of this city need new houses, they need jobs, and new schools, that is what we will be delivering by an administration with a Labour mayor.’
A shift towards an elected mayor was linked to the government’s city deal, which will see an additional £130m handed to Liverpool.
Mayor Anderson ran a campaign built around the deal that had three key promises: to deliver 5,000 new homes, 20,000 new jobs and 12 new schools during his four-year term.
Voters across Britain dealt a blow to David Cameron’s austerity measures and plans for city Mayors in Manchester, Coventry, Bradford and Nottingham, where the local electorate rejected the plan.
Labour has won a string of victories in English and Welsh local elections, which is set to see the party add more than 700 seats.
Labour said it was a "wake-up call" to change course but PM David Cameron said he would go on making "difficult decisions" to deal with the deficit.
Mike Leonard, director of the Modern Masonry Alliance said: “Voters have delivered a clear message. The UK needs jobs and growth.
“Now is the time for the Coalition to invest and Get Britain Building.”