Getting jobless into work remains London's biggest economic challenge

Getting jobless Londoners into employment is the biggest economic challenge facing London, according to the latest report from the London Development Agency (LDA).

The LDA's Fourth Economic Development Snapshot report on London's economy shows that the capital's employment rate remains well below the level in the rest of the country. While London's overall economy is thriving, the employment rate remains more than 5% below the UK average - at 69.3% compared to 74.4% for the UK overall. This means that millions of Londoners are missing out on benefits from the city’s continued economic growth.

This relatively high level of worklessness is due to London's relatively low skills' levels and to the particular barriers faced by some black and minority ethnic groups, disabled people, households with children and lone parent families.

Mayor of London Ken Livingstone said:

"Whilst great strides have been made since 2001 in delivering my economic development strategy, and the London economy is outpacing the global competition, this report proves that tackling unemployment in our city must remain a top priority. That is why it is so important that government devolves greater powers to me so that our approach to lifting skills levels, and tackling the other barriers preventing too many Londoners from taking up employment opportunities, are integrated and targeted to ensure that everyone in the capital benefits as London grows and prospers."

Manny Lewis, Chief Executive of the London Development Agency, said:

"London’s economy continues to thrive.  We want as many Londoners as possible to share in and benefit from that success.  Getting those without jobs into work is one of the LDA’s top priorities."

London's economy is a major strength for the UK as a whole and London's productivity is over 40% higher than the rest of the UK. Predictions are that the capital's economy will grow more quickly over the next few years. There are also some early indications that the employment rate in London's poorest boroughs is beginning to improve.

Ends

For media enquiries: please contact Robert Beasley at the LDA Media Team on 020 7593 8437.

For public enquiries: please call 020 7593 9000; for out of hours media enquiries, please call 07977 439 371.

Notes to Editors:

• Downloaded the Fourth Snapshot report on London's Economic Development Strategy
• The London Economic Development Strategy sets objectives covering: employment growth; housing completions; delivery of infrastructure projects; reducing pollution; tackling barriers to employment and enterprise; boosting the skills of the workforce; and enhancing London's attractiveness as a destination both for tourists and business.
• The London Development Agency works to improve quality of life for all Londoners and drive sustainable economic growth.