London firms are increasingly being forced to hire workers from abroad because of a skills shortage, according to a new survey.
The shortage is being felt at all levels of industry, the survey found
Two out of three businesses in the city are expected to be hit by the shortage in the next six months with most already recruiting overseas.
A quarter of all firms said the problem threatened London's competitiveness.
The Confederation of British Industry (CBI) surveyed more than 100 businesses in the city.
Business leaders said the shortage was being felt across many disciplines and at all levels - from the shop floor to management.
John Cridland, the CBI's deputy director-general, said: "London businesses tell us that a shortage of UK applicants means they often have no choice but to recruit foreign workers for lower-skilled positions in areas such as catering and transport."
Ian Barlow from KPMG, which helped with the research, added: "It's economically wasteful and morally wrong for there to be so many unemployed people in the capital when there are so many jobs to fill."