London firms struggling to recruit staff as people want to WFH
Firms in London are struggling to recruit staff as over four in five businesses have vacancies, according to a new survey of 1,000 companies.
Mayor Sadiq Khan recently announced plans to boost economic growth in the capital, but the latest survey by BusinessLDN suggests he may have a mountain to climb before he achieves his ambitions.
Almost half of firms said they struggled to recruit staff as applicants have become more picky.
Over a quarter of respondents said there was a lack of interest in roles, while 45 per cent of firms surveyed said demands to work from home prevented hiring.
Around four in five firms reported vacancies, representing a steady increase since 2023 when the survey started.
Businesses also reported high levels of dissatisfaction with their own workforce.
Over a third of companies said staff lacked the necessary skills. One in five of these firms said “English skills” were not up to par.
“Basic maths skills” was also reported as a deficient skill among dozens of workforces.
The sectors most likely to have open vacancies include communication and finance.
Businesses across the capital are taking proactive steps to recruit more staff and improve their skillsets. Eight in ten firms said they would increase investment in training workers.
Mark Hilton, a director at BusinessLDN, pointed out that London’s labour market was “cooling” as business anticipated the onset of Rachel Reeves’ £40bn tax raid.
But he added that firms’ struggle to recruit workers meant businesses were looking for the Chancellor to make radical changes to training and education at next week’s Spring Statement.
“With the Mayor and the government both focused on breaking down barriers to opportunity to boost growth, it’s vital that businesses, education providers, City Hall and Whitehall all work together to unlock the full potential of Londoners,” he said.