The Inclusive Talent Strategy
Last month the GLA and London Councils launched the Inclusive Talent Strategy (ITS). The ITS is a vital step in delivering the London Growth Plan. It aims to ensure that all Londoners can benefit from growth by building a skilled workforce and helping more people access high-quality jobs, while making it easier for employers to find the talent they need.
The ITS was shaped through extensive engagement with Londoners, employers, education providers and partners across the skills and employment system. We wanted it to reflect lived experience, be rooted in evidence, and to deliver meaningful change.
The GLA Skills and Employment Insights team produced a detailed evidence base, which provides analysis of current inequalities in labour market outcomes, barriers faced by underrepresented groups, and opportunities to improve access to good work which this supplement summarises.
Findings from the Inclusive Talent Strategy (ITS) evidence base
London has a large working age population but with demographic pressures ahead
The first section of the evidence base focuses on London’s population and labour market. According to mid-year 2023 data, London’s population had reached 8.9 million – with 70% of working age.[1] London’s population remains younger and more ethnically diverse than other parts of the UK, but changes in demographics could impact the city in the coming years. The reduction in school-age children in London is putting pressure on schools as their funding declines, and some are closing. Research produced by London Councils in 2025 predicts a decrease of 3.6% in reception pupil numbers in London over the next four years.[2]
Labour market challenges are not felt equally
In June 2025, 4.9 million Londoners were employed, giving an employment rate of 75%, slightly below the UK average (75.3%) and short of the government’s 80% target. Achieving this would require 327,000 more Londoners in work, all else constant. London is a diverse city – employment rates vary widely across the 33 local authorities: recent data suggests that six exceeded the 80% target between April 2024 and March 2025 (Figure A1).
Figure A1: Employment rate (16-64) by London local authority, April 2024 – March 2025
Source: ONS, Annual Population Survey, April 2024 – March 2025
Note: Due to data issues surrounding the Labour Force Survey some caution should be used when interpreting statistics beyond the headline London level.
Geographical variation is not the sole form of disparity observed across London (see Figure A2). Women in London are 10 percentage points less likely to be employed than men. The employment rate for disabled Londoners is 59%, compared to 80% for those without disabilities. Inequalities by ethnicity are also pronounced: White Londoners have the highest employment rate at 80.1%, while those from mixed ethnic backgrounds have the lowest employment rate at 64.6%.
Figure A2: Employment rate (16-64) by demographic groups, April 2024 to March 2025
Source: ONS, Annual Population Survey, April 2024 – March 2025
Research by GLA Economics shows that equalising employment rates across ethnic groups would add 290,000 racially minoritised Londoners to the workforce – a 6% boost and equivalent to £17.4bn in salaries[3].
London’s population is highly educated but skills gaps hold back productivity
The skills landscape in London is both promising and uneven. London sends a high share of young people to university. It also benefits from many young people moving to the city to study or develop their careers. In 2024, over 62% of working-age Londoners held a Level 4+ qualification (equivalent to lower levels of higher education and above), compared to 47% across England.[4]
However, 1.4 million Londoners have essential skills needs in literacy, numeracy or digitalproficiency. This impacts their ability to engage in work but also the way they are able to live their lives.[5]
An important part of education and skills provision is responding to the needs of businesses to support growth, close skills gaps and boost productivity. Skills gaps among existing staff have risen in the last two years, and training rates remained flat, with a £1bn reduction in the amount employers in London are investing in training between 2022 and 2024, highlighting a persistent need for greater investment in workforce development to support productivity.[6]
Labour market shifts are being shaped by technological change, climate resilience and the transition to net zero. GLA Economics are conducting research on the potential impact of AI on the London labour market, and this will be published in due course.
Not all Londoners have equal access skills and employment opportunities
London’s labour market faces persistent structural barriers that limit access to skills training, employment and economic opportunity. Some of the population groups most impacted include people with low levels of skills, women, ethnic minorities, care leavers, people with experience of the criminal justice system, those experiencing homelessness, people seeking asylum and individuals with disabilities or health conditions. Many individuals experience a multitude of barriers due to intersectionality; this can compound the impact of disadvantage on the individual and exacerbate exclusion.
Structural barriers, such as caring responsibilities, insecure or expensive housing, lack of flexible work opportunities and limited transport options, can significantly hinder Londoners’ ability to access employment, increase their working hours, or take on greater responsibilities at work.
The health of the population is an important part of the story when focusing on people’s ability to engage in training or employment. Despite a relatively high life expectancy in London, health inequalities and work-limiting health conditions (WLHC) are impacting economic participation.
London has also seen a less marked rise in inactivity due to ill health since the pandemic, compared to the rest of the UK. Nonetheless, the WLHC prevalence in London has been rising in the last 10 years – as has inactivity due to long-term sickness, which equated for one in five economically inactive Londoners in 2024.[7] Londoners with WLHCs are more likely to experience precarious employment, be concentrated in certain occupations, and experience greater absence from work due to sickness.
More Londoners should be benefiting from good work
The concept of good work is central to the ITS vision. Good work means fair, inclusive and high-quality employment that treats workers with dignity, offers fair pay, secure contracts, and opportunities to grow. It fosters safe, supportive, and diverse workplaces where employees feel valued and heard. Good work contributes to a stronger, more responsible London economy.
Whilst there has been a positive reduction in low pay in recent years, 14% of jobs in London still pay below the London Living Wage (LLW), rising to 48% in accommodation and food services.[8]
While many jobs in our city offer fair pay, safe conditions, and opportunities for growth, others fall short, sometimes failing to meet even the basic legal standards for wages, working hours, or health and safety. Evidence suggests that 40,000 jobs in London were paid below the legal minimum wage in 2024.[9] Research indicates a link between being offered employment that meets legal minimums, and characteristics such as pay, qualification levels and migration status.[10]
Metrics to monitor the success of the ITS
The ITS aims to support the following targets:
- Increase London’s employment rate to 80%: achieving an 80% employment rate amongst working-age adults is a long-term ambition, shared with the UK government. In London, it would strengthen the economy, reduce inequality, and unlock opportunities for currently underrepresented groups.
- Raise the real household weekly income (after housing costs) of the lowest earning 20% of Londoners by 20% by 2035: this is key to tackling inequality and driving inclusive growth. It would help households under the greatest financial pressure to access essentials such as housing, healthcare and education.
Alongside the 80% employment and income growth targets the GLA will monitor the following:
- Economic outcomes of learners.
- Diversity of growth sectors workforce.
- Londoners earning below the LLW.
- Londoners progressing to higher levels of learning.
- Londoners aged 16-64 with Level 3+ qualifications.
- Skills shortage vacancies.
More information on the ITS, including the Get London Working Plan, can be found online. The full evidence base, summary of the ITS consultation and Talk London campaign can be accessed on the London Datastore.
[1] ONS, Mid-year population estimates, 2025.
[2] Continued drop in school places demand creates impossible choices for London schools | London Councils – Home
[3] GLA Economics, Inequalities in the London labour market, October 2025
[4] ONS, Annual Population Survey, January – December 2024, 2025
[5] Learning and Work Institute, Mapping Local Essential Skills Needs, 2022
[6] DfE, Employer Skills Survey, 2025
[7] GLA Economics, Long-term sickness and the London labour market, 2025
[8] Trust for London, Poverty Profile, 2025.
[9] Department for Business & Trade, National Living Wage and National Minimum Wage: government evidence on enforcement and compliance in 2023 and 2024, 2025
[10] Resolution Foundation, Enforce for good, 2023