A recent report by the GLA (the snappily titled “Commuting patterns in London by qualification level and employment location”) confirms that there are few jobs available to those without qualifications, making competition for such jobs high.
London is one of the world’s leading international business centres yet 30 per cent of its residents are not in work. For some time, fewer Londoners with low qualifications have been in work than elsewhere. In 2007, less than half of Londoners with no qualifications were employed while nearly 90 per cent of those with a degree were in work.
Jobs in London require higher qualification levels and there are relatively few job opportunities available to those without qualifications. When job opportunities are not available locally it is not economical for people with low qualification levels to commute long distances because travel costs are high, relative to wages on offer. This limits the search horizons of those with few qualifications. So, for example, Croydon, Heathrow or outer London will have more opportunities for those with no or lower level qualifications than central London.
Not surprisingly, employees with higher qualification levels are likely to travel further to work than those with low qualifications. Central London is shown to be the major source of employment for the highly qualified workforce in the region. Around one third of degree holders resident in the Greater South East work in central London, making it a significant employer of highly qualified people living within a commutable distance.
The relatively few jobs open to those with no qualifications are spread more evenly across London than jobs taken by those with degree-level qualifications. Jobs filled by people with no qualifications are spread across London, so are more likely to source labour locally.