A new report, charged with identifying the future needs and prerequisites for the capital's business health has highlighted training as the number one priority.

The report by the London Skills Forecasting Unit aims to keep London's employers informed about the skills their workers must develop to keep pace with global competitors and a changing workplace. Eight key sectors have been monitored: financial services, business services, public sector, hotels and catering, retail, transport, manufacturing, and construction. The report identified:

FINANCIAL SERVICES - employment opportunities are slowing down. There are skills gaps in IT, and languages. A knowledge of the Euro single currency market is highly desirable.

BUSINESS SERVICES - there is increasing demand for high-skilled occupations. Opportunities will be governed by specialist knowledge - particularly in IT, clerical, and professional occupations.

PUBLIC SECTOR - is expecting negligible growth in the period 1999-2001. A slight decline in public administration and defence appointments, but a growth in education and health services. It has the highest level of hard to fill vacancies caused by shortages of health care professionals.

HOTELS AND CATERING - expected to have the highest rate of employment growth up until 2001. Customer care, cookery, food preparations, health and safety, interpersonal skills, and IT will be in demand.

RETAIL - is predicted to grow by two per cent, depending on the severity of an economic slowdown. Companies in essential or convenience shopping are likely to fare best. The role of sales assistants is expected to expand.

TRANSPORT - will see average employment growth despite poor image, rates of pay, and unattractive working conditions. IT/programming and management are the major skills needed.

MANUFACTURING - present severe difficulties are exacerbated by poor a training record. Of the capital's long term unemployed, 47 per cent previously worked in manufacturing, and opportunities lie in IT, marketing, and at the craft level.

CONSTRUCTION - the demand is likely to continue at a healthy rate after the Millennium. Multi-skilling and flexibility across tasks are seen as the primary skills requirement. Skills identified are installation and assembly, improved literacy, improved numeracy, IT, and middle management.

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