FIRMS TELL HUNT TO FIX JOBS CRISIS TWO THIRDS OF CITY FIRMS STRUGGLE TO FILL VACANCIES

LONDON’S economy is being hamstrung by a chronic worker shortage that Chancellor Jeremy Hunt needs to tackle at the March Budget, Britain’s biggest business groups said yesterday.

Nearly two thirds of the capital’s firms are struggling to fill vacancies, according to a survey of over 1,000 London businesses commissioned by BusinessLDN, Federation of Small Businesses, Confederation of British Industry and the London Chambers of Commerce and Industry.

Britain’s jobs market has been running extremely tight since the country emerged from Covid-19 lockdown measures, mainly due to over 500,000 people exiting the workforce.

UK unemployment is at a multi-decade low and the ratio of vacancies to jobless people is at historic highs.

However, existing skillsets among available workers are failing to fulfil businesses’ needs.

Over half of the businesses surveyed reckon their biggest recruitment roadblock “is a low number of suitable applicants with the required skills”.

“With most businesses running vacancies they can’t fill, it’s vital we unlock the full potential of the capital’s workforce by giving Londoners the skills employers need,” John Dickie, Chief Executive at BusinessLDN, said.

“Firms are struggling to recruit across all types of roles, from entry-level posts right through to technical experts, with sector-specific and digital skills most in demand.”

In response to the skills drought, some 69 per cent of firms said they are planning to spend more on training.

However, Dickie said the government can help by providing more online courses and ensure state spending is targeted at developing “digital and green skills.”

“Skills shortages not only stunt business growth and affect employment but also have long-term implications for the future of our young professionals,” Richard Burge, chief executive at the London Chamber of Commerce and Industry, said.

The CBI, LCCI, BusinessLDN and FSB are spearheading Greater London’s government-backed local skills improvement plan, which seeks to ensure training better matches the needs of businesses.

The Treasury was contacted for comment.

A spokesperson for Sadiq Khan, the Mayor of London, said London businesses are “crying our for people with the right skills” but the government needed to commit more funding.

PHONE A FRIEND Liberty Global buys 5 per cent stake in Vodafone

TELECOMS giant Liberty Global has bought an almost five per cent stake in Vodafone after claiming shares in the troubled phone operator are undervalued.

The buy-in is a vote of confidence in the British telecoms giant, which has struggled to satisfy investors after producing a series of disappointing results.

But Liberty said Vodafone still has potential, despite the firm’s share price sinking to historic lows.

“We believe, like many others, that Vodafone’s current share price does not reflect the underlying long-term value of their operating businesses,” Liberty chief Mark Fries said yesterday.

Fries added that Liberty believes investors have failed to factor Vodafone’s “announced consolidation and infrastructure opportunities” into the company’s share price. Liberty said it was not considering a takeover.