London 'lacks qualified workers'

The lack of qualified workers could hamper London's recovery

Almost half of London's businesses have problems finding qualified staff despite high unemployment, a new report has claimed.

A survey of 125 firms by business lobbyists CBI found that four in 10 companies have difficulties recruiting.

CBI director Nigel Bourne warned the shortage of skilled workers could slow London's recession recovery.

A spokesman from the Department for Business, Innovation and Skills said they were investing in training.

The skills shortage remains an Achilles' heel for the capital Nigel Bourne, CBI director

But the CBI survey found that half of the 125 executives interviewed were critical of publicly-funded training.

They described it as "not relevant or useful".

Mr Bourne said: "The skills shortage remains an Achilles heel for the capital.

"Even though jobs are being lost and demand has fallen, London businesses still complain they can't match talent to jobs."

He added: "When the upturn comes this could really slow the capital's recovery.

"Government training programmes must become more closely matched to business needs."

But a spokesman for the Department for Business, Innovation and Skills said: "London has its own employer-led skills and employment board which published its strategy last year.

"The government believes that giving a greater voice to employers in deciding the priorities for skills investment will help focus effort on the skills needs of the economy."