Business leaders say a "step change" is needed in training

In a new survey, the Confederation of British Industry said three out of four firms were having problems finding suitably skilled employees.

The poll of 126 businesses also showed most were dissatisfied by government attempts to improve training.

Transport and regulation were also cited as barriers to business.

Richard Lambert, CBI director general, said: "London is one of the world's most dynamic and successful cities and is going from strength to strength, with business positive about the future.

"However, it will shock many to discover that the city has the highest unemployment rate of any region in the UK while, at the same time, employers are increasingly struggling to fill skilled job vacancies."

He said ministers and London Mayor Ken Livingstone were aware of the situation, but he added that a step-change is needed in education and training delivery for workers in the city.