London's economic recovery could be hit by a skills shortage, a new report has warned.
Research by KPMG and the Confederation of British Industry has found that 38 per cent of companies are still having problems appointing people who have the abilities they need despite rising unemployment.
There was some better news, with the study finding that 80 per cent of respondents think the capital is still a good or very good place to do business, with around a third being optimistic about the prospects for six months.
Richard Reid, London chairman of KPMG, called on businesses to take action on the issue.
"Whilst it is inevitable that businesses will continue to keep a tight rein over spend, training and improving the skills of London's workforce is essential so that when the upturn starts to arrive, the City is in a strong position to move forward," he said.
Earlier this month, a study by KPMG found that UK firms expect the country to enter economic recovery by 2011.
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